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The result that, under certain conditions, government intervention is unnecessary to fix a negative externality because it can be eliminated through bargaining between the affected people is called

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

What would happen if the government subsidized consumption of this product because it has positive externalities in consumption?

The result that, under certain conditions, government intervention is unnecessary to fix a negative externality because it can be eliminated through
bargaining between the affected people is called
Multiple Choice
collective bargaining.
a Nash equilibrium.
social justice.
the Coase Theorem.

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