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B. increase and output will increase<br />
C. decrease and output will<br />
decrease<br />
D. decrease and output will increase<br />
Question 15 of<br />
2.5/ 2.5 Points<br />
40<br />
An external cost of production is __________ .<br />
A. a cost incurred by someone other than the<br />
producer<br />
B. the production cost borne by a producer<br />
C. the result of the sum of private and social cost<br />
D. another word for a tax<br />
Question 16 of<br />
2.5/ 2.5 Points<br />
40<br />
Private goods are __________ .<br />
A. rival in consumption and their benefits are excludable<br />
B. nonrival in consumption and their benefits are excludable<br />
C. nonrival in consumption and their benefits are<br />
nonexcludable<br />
D. rival in consumption and their benefits are nonexcludable<br />
Question 17 of<br />
2.5/ 2.5 Points<br />
40<br />
Taxes on a firm's external costs __________ .
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