Markets often generate negative externalities because
A) there are too many participants in the marketplace
B) property rights are sometimes poorly defined
C) identifying pollution sources isn't easy
D) free riders are hard to control
E) social benefits have not been internalized

Question

Quizplus · Accepted Answer

Markets generate negative externalities when property rights are poorly defined, leading to overuse or misuse of resources without considering the external costs imposed on others.

Markets Often Generate Negative Externalities Because