If it is possible to eliminate the problems created by externalities, why do they persist?
A)Correcting externalities always reduces total surplus.
B)It is difficult to measure external benefits and costs.
C)The costs of imposing taxes and subsidies generally exceed the benefits.
D)None of these are true.

Question

Quizplus · Accepted Answer

Externalities persist because it is challenging to accurately measure the external benefits and costs associated with them, making it difficult to implement precise corrective measures.

If It Is Possible to Eliminate the Problems Created by Externalities