Question: Why can externalities cause market failure? Question 3 0 Answer a . Because they result in people making economic decisions not factoring all resulting benefits

Why can externalities cause market failure?
Question 30 Answer
a.
Because they result in people making economic decisions not factoring all resulting benefits and costs
b.
Because they encourage polluters to encourage their level of pollution over time
c.
Because they cause information asymmetry
d.
Because they tend to be generated by monopolists

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!