Asked by
Manveer Chatha
on Nov 05, 2024Verified
Price will increase and output will decrease once government makes a firm
A) internalize a negative externality.
B) externalize a negative externality.
C) internalize a positive externality.
D) externalize a positive externality.
Negative Externality
An adverse effect suffered by a third party as a result of an economic transaction in which they had no involvement.
Internalize
The process of incorporating the cost of externalities into the decision-making process of firms or individuals.
- Analyze the effects of state interventions on equilibrium in the market, cost levels, and outputs.
Verified Answer
EC
Learning Objectives
- Analyze the effects of state interventions on equilibrium in the market, cost levels, and outputs.