alleryStart learning →Taking external pollution costs into account results in a quantity of production that is:
ADoubled
BLower down
CHigher up
DUnchanged
Answer & Solution
Correct answer: B. Lower down
1. A higher price moves quantity along the demand curve.
2. Taking additional external costs into account results in a higher price.
3. It also results in a lower quantity of production.
4. And it results in a lower quantity of pollution.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 12 'Environmental Protection and Negative Externalities'_
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