When There Is No Market for a Negative Externality,the Producer

question 31

Multiple Choice

When there is no market for a negative externality,the producer of the externality _____.

• A)has strong incentive to consider the costs it imposes on others
• B)will try to create a market
• C)will limit production of the good producing the externality
• D)has no incentive to consider the costs it imposes on others

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Definitions:

Environmental Regulations

Environmental regulations are laws and rules enforced by government agencies to manage human impact on the environment, aiming to protect natural resources and ensure the well-being of ecosystems and public health.

Workforce Inclusiveness

Efforts to create a workplace that welcomes, respects, and values diversity among employees.

Action Planning

The process of identifying specific steps or strategies to achieve goals or objectives.

Optimal Sequence

The most effective or efficient order in which a series of events, actions, or operations can be undertaken to achieve a desired outcome.