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.

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter17: Market Failure: Externalities, Public Goods, And Asymmetric Information
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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.
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