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Regulations that make companies pay for negative externalities will most likely _____ production costs. increase decrease keep constant

User Fytch
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the answer is increases.
User Grant Paul
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Regulations that make companies pay for negative externalities will most likely increase production costs. Option A is correct.

A negative externality is defined as the cost that a third party sufferes as a consequence of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties consist of any individual, organisation, property owner, or resource that is indirectly affected.

User Adamr
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