They assess the marginal external cost not accounted for, and the resulting overproduction in the market.

They assess the marginal external benefit not accounted for, and the resulting overproduction in the market.

They assess how marginal external benefit changes relative to marginal private cost.

They assess how marginal external benefit changes relative to marginal private benefit.

When is the solution depicted in steps E and F feasible?

When private bargaining is prohibitive

When using the power of markets and incentives is not feasible.

When it is possible to account for externalities using the power of markets

When altering price can change incentives of buyers and sellers