If companies who took into account an externality want to supply less at any given price compared to the original market supply, it must be a:

David increases the number of companies in which he holds stocks

a. This reduces risk's standard deviation and firm-specific risk. b. This reduces risk's standard deviation and market risk. c. This raises market risk, but lowers firm-specific risk. What happens to overall risk is unclear. d. This raises firm-specific risk, but lowers market risk. What happens to overall risk is unclear.

All of the following are assumed to be constant when the supply curve for a product is drawn, except the:

A. Price of the product B. State of technology C. Number of producers D. Price of inputs used to make the product