In the Presence of Externalities, the Private Competitive Market Will

question 14

True/False

In the presence of externalities, the private competitive market will achieve the socially optimal solution on its own.

---

Definitions:

Contingency Theory

A theory that suggests the effectiveness of a leadership style is contingent upon the context and situation at hand, and no one style is best in all circumstances.

Leadership

The action of leading a group of people or an organization by providing direction, implementing plans, and inspiring individuals to achieve collective goals.

Situation

A set of circumstances or context in which events occur, influencing the outcomes of decisions or actions.

Behavior Modification

A therapeutic approach that seeks to change potentially self-destructive or undesirable behaviors through conditioning techniques.