If a Firm Is Forced to Take External Costs into Account

question 249

Multiple Choice

If a firm is forced to take external costs into account, it will

• A) reduce production and charge a higher market price.
• B) increase production and charge a lower market price.
• C) reduce prices and hire more workers.
• D) reduce prices and hire fewer workers.

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Definitions:

Market Culture

An organizational culture focused on competitive positioning and meeting market needs, characterized by a strong emphasis on results and customers.

Cultural Context

The environment of social behaviors, traditions, and beliefs that surround a particular subject or community.

Sequence

A specific order in which events, movements, or things follow each other.

Chronological Context

The sequence of events in time, providing a framework for understanding the historical or temporal setting.