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    Principles of Microeconomics Study Set 10
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    Exam 10: Externalities
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    One Reason That Private Solutions to Externalities Do Not Always
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One Reason That Private Solutions to Externalities Do Not Always

Question 201

Question 201

Multiple Choice

One reason that private solutions to externalities do not always work is that


A) government intervention negates the benefits of positive externalities.
B) some people benefit from externalities.
C) interested parties incur costs in the bargaining process.
D) charities are not well organized.

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