When dealing with negative externalities, government action is required
A) only if transactions cost are low.
B) for any bargain to be successful.
C) only in environmental disputes.
D) only if transactions costs preclude bargaining between polluter and victim.
D
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When is it not necessary to build a new market supply schedule?
(A) When new technology is used to produce a good. (B) When there is a change in input costs. (C) When there is a change in the number of suppliers. (D) When there is a change in the price of a good.
Which circumstance is most likely to cause a farmer to store soybeans for future sale instead of selling them right after harvest?
(A) Inflation is running at 25 percent. (B) The government lifts restrictions on the importation of soybeans. (C) A new technology decreases the chance of rot. (D) The government imposes an excise tax effective next year.