Question

Regulations that make companies par for negative externalities will most likely_production costs. A) increase b) decrease c) keep constant

Answer 1

The correct option is A.

Step-by-step explanation:

Negative externality is that cost which is paid or suffered by the third part as a result of an economic transaction. In the economic transaction, the consumer and the producer are the first and second parties. The third party involve any property owner, resource, organisation or individual who is indirectly affected.

So, the regulations which make the companies to pay for the negative externalities will most probably increase the cost of the production.