Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities? A. the social cost of production. B. the private cost of production. C. the external cost of production. D. the explicit cost of production.
Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities? A. the social cost of production. B. the private cost of production. C. the external cost of production. D. the explicit cost of production.
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 2.5P
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Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities?
the social cost of production.
the private cost of production.
the external cost of production.
the explicit cost of production.
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