When externalities are present, reaching an efficient outcome is especially difficult when the number of interested parties is large.

Name: When externalities are present, reaching an efficient outcome is especially difficult when the number of interested parties is large.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When externalities are present, coordinating among a large number of interested parties to reach an efficient outcome is difficult due to the complexity of accounting for all the external costs or benefits affecting each party.

When Externalities Are Present, Reaching an Efficient Outcome Is Especially