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Since Externalities Tend to Keep Markets from Reaching a Socially

Question 162

Multiple Choice

Since externalities tend to keep markets from reaching a socially optimal equilibrium,when is government action needed


A) It is always needed, because private solutions can never be attained.
B) It is needed when private solutions fail to arise.
C) It will be needed only to correct for positive externalities.
D) It will be needed only to compensate consumers.

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