State whether each of the statements is TRUE or FALSE, and with one or more sentences and (if needed) a graph explains your reasoning as clearly as you can. a) Command-and-control approach always leads to inefficiency. b) The existence of property right will solve the externality problem associated with public good. c) Market failure arises from public good will be solved if consumers revealed their willingness to pay.
State whether each of the statements is TRUE or FALSE, and with one or more sentences and (if needed) a graph explains your reasoning as clearly as you can. a) Command-and-control approach always leads to inefficiency. b) The existence of property right will solve the externality problem associated with public good. c) Market failure arises from public good will be solved if consumers revealed their willingness to pay.
Chapter17: Externalities And The Environment
Section: Chapter Questions
Problem 1.1P
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State whether each of the statements is TRUE or FALSE, and with one or more sentences and (if needed) a graph explains your reasoning as clearly as you can.
a) Command-and-control approach always leads to inefficiency.
b) The existence of property right will solve the externality problem associated with public
good.
c) Market failure arises from public good will be solved if consumers revealed their
to pay
d) To achieve a cost-effective outcome, abatement responsibilities across polluting sources
must be allocated such that the level of MAC is equal across polluters.
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