What Does the Phrase "Internalizing an External Cost" Mean

question 253

Multiple Choice

What does the phrase "internalizing an external cost" mean?

• A)limiting the extent to which domestic firms can outsource production
• B)prohibiting economic activities that create externalities
• C)forcing producers to factor into their production costs the cost of the externalities created in the production of their output
• D)finding a way to address cross-border pollution

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Definitions:

Relative Abundance

The proportion of a species or specific chemical substances within an ecological community.

Individuals

Distinct entities or beings with unique characteristics, often referring to single human beings or organisms.

Interference Competition

A direct form of competition where organisms physically prevent their rivals from accessing resources.

Exploitative Competition

A form of competition where organisms indirectly interact with each other by consuming scarce resources.