Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Get quick and reliable solutions to your questions from a community of seasoned experts on our user-friendly platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

If a good that generates negative externalities were priced to take these negative externalities into account, then its

Sagot :

Parrain

Answer: price will increase and output will decrease

Explanation:

A negative externality refers a negative effect that is incurred by a third party as a result of the production of a certain good e.g pollution associated with the refining of oil.

When this negative externality is included in price e.g. the cost of cleaning up the pollution, the price will have to increase to reflect that. The good will therefore becomes more expensive to produce which would cause the company to produce less of it which means that the output will fall.

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.