Which of the following is true of a negative externality?
A) Some costs are borne by a third party.
B) The government can use subsidies to encourage firms to internalize the externality.
C) The government must take over the production of this good so that the externality can be internalized.
D) Some benefits accrue to a third party.
E) Its existence always requires corrective measures by the government.
Correct Answer:
Verified
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