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All of the following, except one, are methods by which society can integrate external costs into...

All of the following, except one, are methods by which society can integrate external costs into the market process. Which is the exception? Select one:
A. By taxing producers.

B. By subsidizing buyers.

C. Through legislative controls.

D. Cap and trade
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Answer #1

Ans. B. Subsidizing buyers - through subsidization of buyers the external costs of the firms will not be integrated but will lead to more losses to the firm. As discounts or subsidies would reduce the revenue power and hence less profits.

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