Question

What does the phrase​ "internalizing an external​ cost" mean? A. prohibiting economic activities that create externalities B. forcing producers to factor into their production​ costs, the cost of the externalities created in the production of their output C. limiting the extent to which domestic firms can outsource production D. finding a way to address crossminusborder pollution

Answer 1

Answer:

B. forcing producers to factor into their production​ costs , the cost of the externalities created in the production of their output

Explanation:

" internalizing an external​ cost " -  

It is the process of shifting the cost or the burden from negative externality like the pollution , to inside .

And this process is achieved via paying taxes , the government subsidies , tolls etc .

Hence , the correct explanation for " internalizing an external​ cost " is ( b ) .