Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities?
A) the external cost of production B) the explicit cost of production
C) the social cost of production D) the private cost of production
C
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Differentiate between a change in demand and a change in quantity demanded
What will be an ideal response?
How would a widespread adoption of credit cards affect the demand for money and the demand for money curve?
What will be an ideal response?
If an increase in income leads to a decrease in the demand for salami, then salami is
A) a necessity. B) a neutral good. C) a normal good. D) an inferior good.
When the actual price level in an economy turns out to be lower than that expected in the short run, _____
a. businesses cut back production b. the potential output level decreases c. the aggregate supply curve shifts leftward d. the aggregate supply curve shifts rightward e. an expansionary gap develops