Private Markets Fail to Account for Externalities Because

question 155

Multiple Choice

Private markets fail to account for externalities because

• A)externalities don't occur in private markets.
• B)sellers include costs associated with externalities in the price of their product.
• C)decisionmakers in the market fail to include the costs of their behavior to third parties.
• D)the government cannot easily estimate the optimal quantity of pollution.

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Definitions:

Intellectual Property

Legal rights over creations of the mind, such as inventions, literary and artistic works, designs, and symbols used in commerce.

Starbucks Coffee

An international coffeehouse chain known for its signature roasts, light bites, and premium coffee products.

Geocoded Demographic

Data that includes demographic information tied to specific geographic locations, often used for market analysis and planning.

Goods-Producing Companies

Entities focused on manufacturing physical products as opposed to providing services.