Which of the following statements are correct? 1) Market failures happen because market prices do not always take into account of the full effect of an individual's actions on others. 2) The existence of an externality always leads to overprovision of goods. 3) Market failures can always be solved by private bargaining. 4) Property rights may not always be enforceable.
Which of the following statements are correct? 1) Market failures happen because market prices do not always take into account of the full effect of an individual's actions on others. 2) The existence of an externality always leads to overprovision of goods. 3) Market failures can always be solved by private bargaining. 4) Property rights may not always be enforceable.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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