If firms were forced to take into account the full social costs of production, then
A) output would decrease but pollution levels would probably remain at the same levels.
B) output would be unaffected but pollution levels would come down.
C) output and pollution levels would decrease.
D) output could be increased and pollution levels would decrease.
C
You might also like to view...
Of the following cancer patients, who is speculating?
A) The one who follows their doctor's advice and elects chemotherapy B) The one who goes against their doctor's advice and rejects chemotherapy C) The one who gets a second opinion, but not a third opinion D) All of the above. E) None of the above.
In behavioral economics, the endowment effect refers to the fact that
A) most people believe that most wealthy people inherit their wealth. B) many people would be indifferent between being endowed with money or knowledge. C) many people place a higher value on what they own than the same item they are considering purchasing. D) most people respond to tax incentives to provide an endowment for their children.