When There Are Market Externalities, the Market Allocation of Resources

question 84

True/False

When there are market externalities, the market allocation of resources will be optimal.

---

Definitions:

Substitute Good

A product or service that consumers can use in place of another to satisfy the same need or desire.

Price Decrease

A reduction in the cost of goods or services over a specific period.

Demand Curve

A visual diagram that illustrates the connection between a product's price and the amount consumers are willing to buy.

Sport Utility Vehicles

Large vehicles combining the features of passenger cars with off-road capabilities and increased cargo space.