An industry with production that generates external costs produces a quantity of output that is: A. socially optimal if a specific subsidy is given to buyers. B. socially optimal. C. larger than the socially optimal quantity. D. smaller than the socially optimal quantity.

Option c: larger than the socially optimal quantity.

Explanation:

External costs do sometimes happens in the production and the consumption of a good or service. An example of an external cost in production is a chemical firm polluting a river with its waste.

external costs are simply negative externalities and external benefits are positive externalities.

Externalities are simply known as indirect costs and benefits which are external to an exchange. They are also third party effects ignored by the price mechanism.

Multiply your original principal amount by the Index Ratio. This is your inflation-adjusted principal. Multiply your inflation-adjusted principal by half the stated coupon rate on your security (i.e., 2%). The resulting number is your semi-annual interest payment.The principal value of an inflation-protected bond is adjusted upward or downward based on changes in the Consumer Price Index, which is the formal measure of inflation in the United States. Inflation protected bonds pay a fixed rate of interest twice a year.

Explanation: