What is one reason private solutions to externalities do NOT always work
A)Government participation in such solutions complicates the process.
B)Some people benefit from externalities.
C)Interested parties incur costs in the bargaining process.
D)The actual costs and benefits of the problem are difficult to see.

Question

Quizplus · Accepted Answer

Private solutions to externalities may not always work because interested parties incur costs in the bargaining process, which can hinder reaching an agreement.

What Is One Reason Private Solutions to Externalities Do NOT