Internalizing an externality makes _____

a. consumers pay a price that is equal to their private willingness to pay
b. producers charge a price that is equal to the marginal cost of production faced by them
c. the government tax a third party who has been affected by the externality
d. market participants consider the costs of or benefits to other parties while making decisions


d

Economics

You might also like to view...

In 2009, global investors began to regain confidence in the financial system and reversed the flight to safety that had taken place during the depths of the financial crisis

Make use of a graph of the market for corporate bonds to show the impact on corporate bonds prices and yields.

Economics

In the short run, a monopoly may

a. only earn positive economic profits. b. only earn zero economic profit, c. earn positive economic profits or economic losses. d. only earn economic losses.

Economics

An increase in consumers' incomes raises the equilibrium price and quantity of fine clothing

Indicate whether the statement is true or false

Economics

The median voter theorem states that a. the median voter will never hold the decisive vote in an election. b. policies that are enacted will be least preferable to the median voter. c. the median voter will hold the decisive vote in an election

d. policies that are enacted will be most preferred by the median voter.

Economics