Kizspy | Question: 14
(Choose 1 answer)
Which of the following statements is correct?
A. Private markets fail to account for externalities because externalities don't occur in private markets.
B. Private markets fail to account for externalities because sellers include costs associated with externalities
in the price of their product.
C. Private markets fail to account for externalities because decisionmakers in the market fail to include the
costs of their behavior to third parties.
D. Private markets fail to account for externalities because the government cannot easily estimate the optimal
quantity of pollution.
