Private Parties May Choose Not to Solve an Externality Problem

question 166

True/False

Private parties may choose not to solve an externality problem if the transaction costs are large enough.

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Definitions:

Individualized

Tailored or customized to meet the specific needs or characteristics of an individual person.

Chronological Age

The actual age of a person or object defined in years from the date of birth.

Uncomfortable Silences

Moments of silence in conversation or interaction that create a feeling of discomfort or awkwardness among participants.

High Pitch

A sound frequency that is high, often described as shrill or squeaky, perceived differently depending on the listener's hearing ability.