214k views
0 votes
How may negative

externalities lead to market failures? Should government
correct the failures caused by externalities?

User Keara
by
6.1k points

1 Answer

4 votes

Answer:

Externalities lead to market failure because a product or service's price equilibrium does not accurately reflect the true costs and benefits of that product or service

User GabrielaBezerra
by
6.7k points