When an externality is present in a market,and correcting it increases the efficiency of the market,we can conclude it is a:
A) negative externality.
B) positive externality.
C) network externality.
D) either a negative or a positive externality.

Question

Quizplus · Accepted Answer

Correcting an externality, whether negative or positive, increases market efficiency by aligning private costs/benefits with social costs/benefits.

When an Externality Is Present in a Market,and Correcting It