Each of the following, except one, is a condition necessary for a private market solution to an externality problem. Which is the exception?

a. Legal rights must be clearly established.
b. Legal rights must be easily transferred.
c. The number of people involved must be very small.
d. The amount of money involved must be very small.
e. Side payments must be arranged without cost.

D

Economics

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_________is a cost that changes when the business rate of operation or output changes.

Fill in the blank(s) with the appropriate word(s).

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How does a firm measure its profit?

What will be an ideal response?

Economics