Which of the following statements about externalities is correct? a. Education is the standard example used to illustrate a negative externality. b. Externalities caused by the use of the product itself are often a result of competitive pressures to bring the product to market fast. c. Promoting vigorous competition, through the enforcement of the antitrust laws, is the most effective way to reduce externalities. d. All of the above are correct. e. Both a and b are correct. f. Both a and c are correct. g. Both b and c are correct. h. None of the above is corre

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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  1. Which of the following statements about externalities is correct?
a. Education is the standard example used to illustrate a negative externality.
b. Externalities caused by the use of the product itself are often a result of competitive pressures to bring the product to market fast.
c. Promoting vigorous competition, through the enforcement of the antitrust laws, is the most effective way to reduce externalities.
d. All of the above are correct.
e. Both a and b are correct.
f. Both a and c are correct.
g. Both b and c are correct.
h. None of the above is correct.
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