If a Firm Is NOT Forced to Pay for External

question 101

Multiple Choice

If a firm is NOT forced to pay for external costs, it will

• A) continue to overproduce the good.
• B) continue to under produce the good.
• C) request a subsidy from the government.
• D) raise prices.

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Definitions:

Cognitive Component

A component of attitude that reflects what a person believes to be true.

Jaguar Vehicles

A prestigious brand of luxury and sports cars produced by the British automobile manufacturer Jaguar Land Rover.

Mechanical Problems

Issues or failures related to the components and systems of a mechanical nature in devices, vehicles, or machinery.

Negative Attitudes

Refers to unfavorable or adverse feelings and perceptions towards a person, object, or idea.