Reaching an efficient bargain is difficult when the
A)externality is large.
B)number of interested parties is large.
C)externality is negative.
D)government becomes involved.

Question

Quizplus · Accepted Answer

When the number of interested parties is large, it becomes difficult to reach an efficient bargain because each party may have different preferences and priorities. This can lead to a bargaining process that takes longer and is more complex.

Reaching an Efficient Bargain Is Difficult When the