When a market is corrected for externalities,it:
A) is equitable.
B) maximizes surplus.
C) makes everyone in society better off.
D) All of these statements are true.

Question

Quizplus · Accepted Answer

Correcting for externalities aims to maximize total surplus by aligning private costs or benefits with social costs or benefits, leading to a more efficient allocation of resources. It does not necessarily ensure equity or make everyone better off.

When a Market Is Corrected for Externalities,it