Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A market failure in the form of an externality arises when a. the benefits of consuming a good exceed the costs b. a market fails

A market failure in the form of an externality arises when

a. the benefits of consuming a good exceed the costs

b. a market fails to achieve equilibrium

c. not all costs and benefits are included in the price of a good

d. production costs are included in the price of a good

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Inquiry Into The Nature And Causes Of The Wealth Of Nations

Authors: Adam Smith, R H Campbell

1st Edition

0865970068, 9780865970069

More Books

Students also viewed these Economics questions