To what do market externalities lead? Group of answer choices Greater inefficiency in the market as it accounts for costs or benefits which encroach on third parties through activity in that market. Greater efficiency in markets as it ignores the benefits or costs which encroach on third parties through activity in that market Greater efficiency in markets as it accounts for costs or benefits which encroach on third parties through activity in that market. Greater inefficiency in the market as it ignores the benefits or costs which encroach on third parties through activity in that market.

What is the main problem associated with negative externalities? a) They lead to an overallocation of resources. b) They result in inefficiency in resource allocation. c) They encourage competitive markets. d) They have no impact on market outcomes.

How do negative externalities cause market failure?

If positive externalities exist in a market, then OSocial cost is greater than private cost OSocial cost is equal to private cost OSocial cost is lower than private cost

Why are externalities considered a sign of market failure?

Select the factor that would be an example of a positive externality.          a war in the Middle East impacting oil prices         the construction of a new rail system that allows a factory to ship their products cheaper         a trade war driving up steel prices for a U.S. automaker         a drought that ruins a corn harvest

Gorwing use of social media, like facebook and snapchat it becomes more attractive for other people to use it too. A positive network externality, the snob effect, an external demand, a fad. Which one of the foolowing is the phenomenon which is being noticed here?

why do externalities make market outcomes inefficient?

Positive externality No externality Negative externality Answer Bank The U.S. government decides to Lyle and Julia from The hing company icago house all of its nuclear waste to Los Angeles with their newborn infant who cries the entire way illegally hunts the Coelacanth, material at Cactus Cliff, WY. As a critically endangered fish that is close to extinction with all nuclear waste, there is no fail-safe protection method Jane raises bees to produce honey Ronald, the first in his family to attend for her business, but her bees also college, graduates from medical school pollinate many flowers in the neighborhood where she lives. and decides to return home to work as a doctor in his old neighborhood.

A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently Pays less for the good or service benefits from a market transaction pays a pollution tax to balance social costs