One reason that private solutions to externalities do not always work is that
a. government intervention negates the benefits of positive externalities.
b. some people benefit from externalities.
c. interested parties incur costs in the bargaining process.
d. charities are not well organized.
c
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The "prisoner's dilemma" is a result of
a. differentiated products b. large number of participants c. game theory d. certain outcomes e. open market entry
People who report being not in the labor force but who, in fact, want to work but have given up trying to find a job after an unsuccessful search cause the reported unemployment rate to be lower than it would otherwise be
a. True b. False Indicate whether the statement is true or false
In the long run when a perfectly competitive firm experiences negative economic profits
A) firms exit the industry, the market supply curve shifts rightward, and the market price falls. B) firms enter the industry, the market supply curve shifts rightward, and the market price falls. C) firms exit the industry, the market supply curve shifts leftward, and the market price rises. D) firms enter the industry, the market supply curve shifts rightward, and the market price rises.
As the definition of products narrows (i.e., becomes more specific), the concentration ratio
A. is not valid. B. tends to increase. C. tends to decrease. D. does not change in any predictable manner.