Question

The parties involved in an externality have an incentive to reach an efficient solution because A. government regulations compel private parties. B. the party that causes negative externality does not have any legal right to do so. C. it is morally the right thing to do. D. both parties become better off when an efficient solution is reached

Answer 1

D. Both party's become better off when an efficient solution is reached

Step-by-step explanation: