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:

Financially Stable

Being financially stable means having efficient financial resources to fulfill daily needs, invest, and save for the future without undue stress about finances.

Satisfying Relationship

A relationship in which the needs, wishes, and expectations of all involved parties are met and respected.

Career

The pursuit and progression of an individual in a job or series of jobs over their working life, often related to their expertise or interest.

Organizer

An individual or tool that aids in arranging, structuring, or coordinating activities, events, or information effectively.