Ask Question
BusinessBusiness
24 September, 14:08

When a business produces a product that creates external costs?

+4
Answers (1)
  1. 24 September, 15:13
    0
    The business produces a level of output at the same level as it would produce without the external costs.

    This means that the company considers the level of output independent of the external costs, despite creating them. This approach is taken because they are external to the business or company, and, therefore, not a factor for the company's decision-making process and production decisions. External consequences can correct this decision-making process.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “When a business produces a product that creates external costs? ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A customer, age 69, has never invested in securities. She is retired with no dependents, living on a fixed pension of $35,000 per year. She has a savings account with $160,000 and her home is fully paid.
Answers (1)
Now, suppose the student wishes to bring back some ice cream from the restaurant for her friends at school, but since it is such a hot day, the ice cream will melt away in the car in only 5 minutes.
Answers (1)
Under SFAS 141R, a. both direct and indirect costs are to be expensed. b. both direct and indirect costs are to be capitalized. c. indirect costs are to be capitalized and direct costs are to be expensed. d.
Answers (1)
According to surveys, the largest expense of a typical american consumer is?
Answers (1)
A major employer relocates, leaving many homes in an area vacant and unmaintained. this is an example of
Answers (1)
New Questions in Business
What is a great marketing strategy
Answers (2)
On January 1, 20X8, Package Company acquired 80 percent of Stamp Company's common stock for $280,000 cash.
Answers (1)
Tombert Decorating uses a job order cost system to collect the costs of its interior decorating business. Each client's consultation is treated as a separate job. Overhead is applied to each job based on the number of decorator hours incurred.
Answers (1)
Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibrium quantity and the socially optimal quantity of cookies to be produced? a. They are equal. b.
Answers (1)
Comfort Cloud manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year.
Answers (2)
Home » Business » When a business produces a product that creates external costs?
Sign Up Forgot Password?