Which of the following would make it less likely that individuals will be able to resolve a negative externality without government intervention? The transaction costs associated with bargaining are high. The individuals involved in the dispute cannot accurately gauge the cause or the source of the damage.
Which of the following would make it less likely that individuals will be able to resolve a negative externality without government intervention? The transaction costs associated with bargaining are high. The individuals involved in the dispute cannot accurately gauge the cause or the source of the damage.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Which of the following would make it less likely that individuals will be able to resolve a negative
externality without government intervention?
The transaction costs associated with bargaining are high.
The individuals involved in the dispute cannot accurately gauge the cause or the source of
the damage.
The individuals involved in the dispute cannot legally prevent the damage.
All of the above make it less likely that individuals can resolve this issue privately.
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