In the event of a detrimental externality that affects the public interest, government action is the only solution.

Question

Quizplus · Accepted Answer

While government intervention, such as regulation or taxation, is a common solution to address detrimental externalities, it is not the only solution. Market-based approaches, private negotiations (Coase Theorem), voluntary agreements, and community initiatives can also effectively address externalities.

In the Event of a Detrimental Externality That Affects the Public