When is reaching an efficient bargain especially difficult
A)when the externality is small
B)when the number of interested parties is large
C)when the externality is negative
D)when the government becomes involved

Question

Quizplus · Accepted Answer

When the number of interested parties is large, it can be difficult to reach an efficient bargain because there are more opinions and demands to consider, leading to potential gridlock and difficulties in finding a mutually acceptable solution. Additionally, more parties means that the negotiation process may take longer and become more complicated. The other options (A, C, and D) do not necessarily make reaching an efficient bargain more difficult in all situations.

When Is Reaching an Efficient Bargain Especially Difficult