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(Choose 1 answer)
Which of the following statements is correct?
A. When externalities cause markets to be inefficient, government action is always needed to solve the problem.
B. When externalities cause markets to be inefficient, private solutions can be developed to solve the problem.
C. When externalities cause markets to be inefficient, given enough time, externalities can be solved through normal market adjustments.
D. When externalities cause markets to be inefficient, there is no way to eliminate the problem of externalities in a market.
