Asked by
Rebecca Ramos
on Nov 17, 2024
Verified
When externalities are present, reaching an efficient outcome is especially difficult when the number of interested parties is large.
Interested Parties
Refers to individuals or groups that have a stake or interest in the outcome of a project, decision, or outcome.
Efficient Outcome
A situation in which resources are allocated in the most effective way possible, often achieved through market equilibrium where supply equals demand.
- Become familiar with the barriers faced by private negotiations in resolving externality concerns, notably in situations where transaction costs are present.
Verified Answer
RM
Learning Objectives
- Become familiar with the barriers faced by private negotiations in resolving externality concerns, notably in situations where transaction costs are present.
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