Which of the Following Is True About the Market-Based Approach

Which of the following is true about the market-based approach to environmental responsibility?

A) Market failure occurs when no markets exist to create a price for important social goods.
B) Free market exchanges can guarantee optimal results for addressing issues related to externalities.
C) The market-based approach always ensures that what is good and rational for a collection of individuals is also good and rational for a society.
D) Markets can be very successful if important ethical and policy questions and policy decisions are left solely to the outcome of individual decisions.