Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Which of the following statements does not represent a market failure, a situation in which the pursuit of profit will not result in a net
Which of the following statements doesnotrepresent a market failure, a situation in which the pursuit of profit will not result in a net increase in consumer satisfaction?
- Where there is no mechanism for pricing, for setting a value on public goods, there is no guarantee that the markets will result in the optimal satisfaction of the public interest in regard to public goods.
- The costs of pollution, groundwater contamination and depletion, soil erosion, and nuclear waste disposal are borne by parties external to the economic exchange between buyer and seller.
- The pursuit of individual self-interest results in a worse outcome than would have occurred had the behavior of the parties involved in the economic exchange been coordinated through cooperation or regulation rather than mere competition.
- Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started