A Solution to Market Failure in the Particular Application of Environmental

Multiple Choice

A solution to market failure in the particular application of environmental policy

A) can be the establishment of a new market where one had not existed before.
B) can never be market-based, as market failure implies that markets damage the environment.
C) can never involve the government because the government initially created the market failure.
D) is impossible because firms and consumers follow their self-interest.