Externalities are fundamentally the result of
A) the absence of competition in a market.
B) the lack of well-defined or enforced property rights.
C) poor information on the part of consumers.
D) the presence of significant comparative advantages in production.

Question

Quizplus · Accepted Answer

Externalities occur when property rights are not well-defined or enforced, leading to costs or benefits affecting third parties not involved in the transaction.

Externalities Are Fundamentally the Result of