One reason why property rights help achieve an efficient level of pollution is because property rights
A) eliminate marginal private costs.
B) force the marginal social cost to zero.
C) change the marginal external cost so that it is equal to the marginal social benefit.
D) force the marginal private cost to equal the marginal social cost.
E) force the marginal external cost to a lower level than marginal private cost.

Question

Quizplus · Accepted Answer

Property rights create an incentive for individuals to consider the cost and benefits of their actions on others. This leads to the internalization of externalities and forces the marginal private cost to equal the marginal social cost, which results in an efficient level of pollution.

One Reason Why Property Rights Help Achieve an Efficient Level