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Manveer Chatha
on Nov 05, 2024

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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.
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Edson CedenoNov 12, 2024
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