Which of the following statements is correct? a. internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced. b. internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and increase the price of the good produced. c. internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and decrease the price of the good produced. d. internalizing a negative externality will cause an industry to increase the quantity it supplies to the market and increase the price of the good produced.

The answer is (A) Internalizing a negative externality will cause an industry to decrease the quantity it supplies to the market and decrease the price of the good produced.

Explanation:

A negative externality is commonly defined as the cost that a third party (also known as consumers) must pay when they chose to be involved in a transaction. This cost is not directly incurred – rather, it is a side effect of the transaction the consumers chose to engage in. An example would be – by choosing to purchase gasoline, the consumers create an additional cost of air pollution when using the product. When an economic firm chose to internalize a negative externality – they would choose to decrease the production of the product, and the price of the goods.  

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

answer; customers within the organization