Which of the following represents the true economic cost of production when firms produce goods that generate negative externalities?

Stock options perfectly align management incentives with incentives of owners

Indicate whether the statement is true or false

According to Robert Reich, secretary of Labor in the Clinton administration,

a. the identity of American companies is clear, and laws should be written accordingly. b. foreign companies are clearly different from American companies. c. multinational companies have clear bases of operations, which form their identity. d. it is almost impossible to define the nationality of a multinational company. e. identifying the country of origin of a product is almost impossible, but essential for proper regulation.