An individual producer or a consumer "internalizes an externality" when

a) they keep knowledge of the externalities private to them.

b) they ignore the externalities created by their actions.

c) in their own decisions they take into account the external effects of their actions.

d) they lobby against any government action related to the externalities caused by their actions.

Question

Business

Parker Chapman

21 February, 01:31

An individual producer or a consumer "internalizes an externality" when

a) they keep knowledge of the externalities private to them.

b) they ignore the externalities created by their actions.

c) in their own decisions they take into account the external effects of their actions.

d) they lobby against any government action related to the externalities caused by their actions.

+4

Answers (2)

Know the Answer?

Tyrell Cardenas · Answer 1

Answer: c

Explanation:

An individual producer or a consumer "internalizes an externality" when. in their own decisions they take into account the external effects of their actions. A producer or a consumer will internalize an externality because.

Elaine · Answer 2

"C"

Explanation:

Internalization of externality is a method utilized by manufacturer or consumers to absorb the effect of their operation on the environment

This effect can be of a cost to the environment, The externality may not be of direct impact to the party that caused it and some may decide to ignore it

But when these are internalized, the cost of managing these external impact is considered and necessary provision are made to take care of it