Which of the Following Must Be Present to Reach a Private

Multiple Choice

Which of the following must be present to reach a private solution to an externality problem?

A) A majority of the parties affected by the externality must agree to a solution.
B) The transaction costs to negotiate a solution must be relatively low.
C) The total number of people, creators of the problem and those affected, must be relatively large to justify negotiating a solution.
D) The government must approve the solution for it to be a legal solution.