If it's possible to eliminate the problems created by externalities, why do they persist?
A)It can be difficult to coordinate the millions of market participants.
B)Creating a more efficient solution does not guarantee a fair distribution of surplus.
C)Solutions can be diffuse, complex, and hard to control.
D)All of these are true.

Question

Quizplus · Accepted Answer

Externalities persist because coordinating a vast number of market participants is challenging, creating efficient solutions doesn't ensure fair surplus distribution, and solutions can be complex and difficult to implement effectively.

If It's Possible to Eliminate the Problems Created by Externalities