True/False
External costs lead markets to produce a smaller quantity of a good than is socially desirable, while external benefits lead markets to produce a larger quantity of a good than is socially desirable.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q67: Conditions for the Coase theorem are typically
Q68: The market equilibrium is not efficient when
Q69: Which equation is TRUE?<br>A) private cost +
Q70: Suppose the government limits the amount of
Q71: If the government forced external cost internalization
Q73: What negative externality does antibiotic use create?<br>A)
Q74: The text discusses private solutions for resolving
Q75: If a tin of sardines creates a
Q76: The EPA's system of tradable allowances is
Q77: The command and control method is a