Figure 10-4
-Refer to Figure 10-4. This market is characterized by
A)government intervention.
B)a positive externality.
C)a negative externality.
D)None of the above is correct.

Question

Figure 10-4 
-Refer to Figure 10-4. This market is characterized by
A)government intervention. 
B)a positive externality. 
C)a negative externality. 
D)None of the above is correct.

Quizplus · Accepted Answer

A negative externality occurs when the production or consumption of a good causes a harmful effect to a third party, which is often depicted in market diagrams like Figure 10-4.

Figure 10-4 -Refer to Figure 10-4. This Market Is Characterized by