When an External Cost Associated with the Production of Some

question 30

Multiple Choice

When an external cost associated with the production of some good has been internalized,it means that

• A)the opportunity cost of production is passed on to the consumer.
• B)the private cost of production is borne by the producer.
• C)the external costs are incorporated into private decision making.
• D)the consumer is bearing the net social benefits imposed by the producer.
• E)the firm is ignoring social costs.

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Definitions:

Allegations

Claims or assertions made against someone, often without proof, typically in legal contexts.

Silence

The absence of sound or the state of saying nothing, often used as a communication or negotiation strategy.

Acceptance

In contract law, it refers to the agreement of the offeree to the terms of the offer, creating a binding contract.

Circumstances

The conditions or facts affecting a situation, event, or action, which can influence the outcome or how it is perceived.