What is environmental damage, as a market failure, caused by?
A) the absence of prices for the use of the atmosphere and waterways
B) firms' relentless pursuit of profits
C) apathy on the part of consumers
D) globalization

Question

Quizplus · Accepted Answer

Environmental damage as a market failure is caused by the absence of prices (also known as externalities) for the use of the atmosphere and waterways. When firms do not have to pay for the pollution they generate, they do not take into account the negative impact they are having on the environment. This results in an overuse of natural resources and damage to the environment.

What Is Environmental Damage, as a Market Failure, Caused By