Which of the following is not a limitation of the market pricing approach to evaluating environmental goods and services?
A) One needs to use opportunity cost.
B) Only a few ecosystem services are traded in markets.
C) There are price distortions.
D) Markets for these goods are imperfect.
E) Demand and supply curves are not always well-defined.

Question

Quizplus · Accepted Answer

The use of opportunity cost is not a limitation of the market pricing approach; rather, it is a method used to evaluate the cost of environmental goods and services. The other options are limitations because they highlight issues with market availability, price accuracy, market imperfections, and the difficulty in defining demand and supply for environmental goods.

Which of the Following Is Not a Limitation of the Market