When _____ are ______,it will be difficult to reach a private solution.
A)transactions costs;high
B)transactions costs;low
C)externalities;visible
D)externalities,invisible

Question

Quizplus · Accepted Answer

When transaction costs are high, it means that the costs involved in negotiating, monitoring, and enforcing contracts are higher. This can make it difficult for private parties to come to a mutually beneficial agreement, leading to market failure. Therefore, it will be difficult to reach a private solution.

When _____ Are ______,It Will Be Difficult to Reach a Private

When _ Are __,It Will Be Difficult to Reach a Private