What does the phrase "internalizing an external cost" mean? a. prohibiting economic activities that create externalities b. forcing producers to factor into their production costs, the cost of the externalities created in the production of their output c. limiting the extent to which domestic firms can outsource production d. finding a way to address crossminusborder pollution

B. forcing producers to factor into their production costs , the cost of the externalities created in the production of their output

Explanation:

" internalizing an external cost " -  

It is the process of shifting the cost or the burden from negative externality like the pollution , to inside .

And this process is achieved via paying taxes , the government subsidies , tolls etc .

Hence , the correct explanation for " internalizing an external cost " is ( b ) .

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explanation: be healthy

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