When negative externalities are present, market failure often occurs because: the cost borne by a third...
When negative externalities are present, market failure often occurs because:
the cost borne by a third party not involved in the trade is not reflected in the market price.
the cost borne by a third party not involved in the trade is reflected in the market price.
the existence of imports from foreign countries takes jobs (and income) away from U.S. citizens.
consumers will consume the good at a level at which their individual marginal benefits exceed the marginal costs borne by the firm producing the good.
Homework Answers
"A"
the cost borne by a third party is not involved in the trade s not reflected in the market place. It lead to a negative externality and that will lead to a market failure. The answer is "A".
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When negative externalities are present, market failure often
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