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A. increase the social benefit to be above the marginal<br />
cost<br />
B. internalize the externality<br />
C. allow the firm to evade external costs<br />
D. drive polluting firms out of developed countries<br />
Question 4 of 402.5/ 2.5 Points<br />
Which of the following would be typically classified as a public good?<br />
A. postal delivery<br />
B. national defense<br />
C. toll roads<br />
D. college<br />
education<br />
Question 5 of 402.5/ 2.5 Points<br />
Sirens located around a town to warn citizens of the approach of a tornado are an example of<br />
__________ .<br />
A. an external cost<br />
B. a private good<br />
C. a common<br />
resource<br />
D. a public good<br />
Question 6 of 402.5/ 2.5 Points<br />
Once a firm is forced to consider an external cost, the price of its product will __________ .
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