When a market is fully corrected for externalities, it:
A)is efficient and maximizes surplus.
B)is equitable and makes everyone better off.
C)must be maintained through government regulation.
D)All of these are true.

Question

Quizplus · Accepted Answer

When a market is fully corrected for externalities, it becomes efficient and maximizes surplus because the external costs or benefits are internalized, leading to an optimal allocation of resources.

When a Market Is Fully Corrected for Externalities, It