A corporation is often financed through stocks and bonds.

Which of the following statements best defines private costs?

A) They are internal in the sense that the firm or household must explicitly take them into account. B) They are costs borne by people other than those who commit the action. C) They are synonymous with social costs. D) They represent explicit costs incurred by business firms in the private sector.

An increase in the price of sodium carbonate, a chemical compound used in detergents, will:

a. increase the quantity of detergents demanded. b. decrease the quantity of detergents demanded. c. decrease the demand for detergents. d. increase the demand for detergents.