The similarity between markets for common resources and markets with externalities is that:
A. the equilibrium quantity is too high in terms of society.
B. the price that competitive firms charge does not capture the true costs and benefits of consumption.
C. government involvement is needed to reach an efficient outcome.
D. generally we get an oversupply at market.
B. the price that competitive firms charge does not capture the true costs and benefits of consumption.
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If a increase in income decreases the demand for a good, then the good is a(n)
a. substitute good. b. complementary good. c. normal good. d. inferior good.
Explain why it is the case that the value of intermediate goods produced and sold during the year is not included directly as part of GDP, but the value of intermediate goods produced and not sold is included directly as part of GDP