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:

Marketing Plan

A comprehensive document or strategy outlining an organization's advertising and marketing efforts over a period, including campaigns, goals, and target markets.

Operations Plan

A detailed plan outlining the day-to-day activities necessary for running a business, including production, inventory, and distribution strategies.

Lower Prices

Reduced costs of goods or services offered to consumers, often used as a strategy to increase demand or market share.

Market Share

The portion of a market controlled by a particular company, expressed as a percentage of total sales in the industry.