Which of the following statements is correct? A: Government should tax goods with either positive or negative externalities. B: Government should tax goods with negative externalities and subsidize goods with positive externalities. C: Government should subsidize goods with either positive or negative externalities. D: Government should tax goods with positive externalities and subsidize goods with negative externalities.
Which of the following statements is correct? A: Government should tax goods with either positive or negative externalities. B: Government should tax goods with negative externalities and subsidize goods with positive externalities. C: Government should subsidize goods with either positive or negative externalities. D: Government should tax goods with positive externalities and subsidize goods with negative externalities.
In a competitive market with no externalities,
In a competitive market with no externalities,
Take two examples of positive and negative externalities.
Take two examples of positive and negative externalities.
Network externalities can only be positive.
Network externalities can only be positive.
The market undervalues investments in energy efficiency due to the existence of externalities.
The market undervalues investments in energy efficiency due to the existence of externalities.
When externalities are present in a market, the well-being of market participants
When externalities are present in a market, the well-being of market participants
The two main causes of market failure are externalities and market power.
The two main causes of market failure are externalities and market power.
If both parties are well-trained, private negotiation can always solve the inefficiency caused by externalities.
If both parties are well-trained, private negotiation can always solve the inefficiency caused by externalities.
Negative<br/>externalities cause loss of welfare not transmitted by market<br/>factors.
Negative<br/>externalities cause loss of welfare not transmitted by market<br/>factors.
Market failure in the form of externalities arises when the market fails to achieve equilibrium.
Market failure in the form of externalities arises when the market fails to achieve equilibrium.