Which of the following statements describes a similarity between markets for common resources and markets with externalities?
A) The equilibrium quantity is too high.
B) The price that competitive firms charge does not capture the true costs and benefits of consumption.
C) Government involvement is needed in order to reach an efficient outcome.
D) Generally, the good or service is oversupplied in the market.
Correct Answer:
Verified
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Q54: Free riders receive _ externalities from _.
A)negative;
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Q58: When a good is not easily excludable,
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