Why Are Markets Often Inefficient When Negative Externalities Are Present

question 92

Multiple Choice

Why are markets often inefficient when negative externalities are present

• A)Private costs exceed social costs at the private market solution.
• B)Externalities can never be corrected without government regulation.
• C)Social costs exceed private costs at the private market solution.
• D)Production externalities lead to consumption externalities.

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Definitions:

Infectious Laundry

Laundry that has been contaminated with pathogens or infectious materials, requiring special handling and disinfection processes.

Biohazard Symbol

A universally recognized symbol used to signify the presence of or potential exposure to harmful biological substances.

Aseptic Precautions

Measures taken to prevent contamination by pathogens in a medical or surgical setting to maintain a sterile environment.

Wearing Gloves

The practice of covering the hands with gloves as protection against various hazards or for hygiene.