When there are significant costs involved with coordinating a private solution to an externality:
A)it likely will not happen.
B)a leader will likely be elected to organize the coordination.
C)it can act as a motivating factor to solve the externality problem expediently.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

When there are significant costs involved with coordinating a private solution to an externality, it becomes difficult to get all parties involved to agree and take action. This can lead to the private solution not happening.

When There Are Significant Costs Involved with Coordinating a Private