In the United Looks to a Startup article it states that United Airlines Holdings plans to buy 200 flying taxis worth $1 billion from Archer, the Palo Alto based electric aircraft startup. It further states that air taxis could halve carbon dioxide emissions for passengers traveling from Hollywood to Los Angeles International Airport. Knowing carbon emissions damage the atmosphere, Archer's production of air taxis would best be described by which of the following economic principals?

• A Capitalism is good at creating negative externalities and moral hazard.
• B Capitalism is good at responding to change and promoting progress.
• C Economic systems must explore how societies allocate scarce resources among unlimited wants
• D Archer is successful because it benefits from government tax credits
• E Archer benefits because of the increasing opportunity costs that exist in the airline industry's production possibilities curve