What is the difference between negative externalities and demerit goods?

In the presence of externalities, and in the case of public goods and common resources, markets do not lead to

  • In the presence of externalities, and in the case of public goods and common resources, markets do not lead to optimal provision. Why does the market fail in these cases?

  • Answer:

    hey, dude, don't tell me u have posted your homework questions online and hope someone would do them for you, i have read some of the questions u posted, and they are very closely related. I think u must be taking a principle class. suggest u to open ur textbook, if u wanna major in econ in the future. u will learn a lot. it is not as hard as u think, and u might find it interesting

kerry at Yahoo! Answers Visit the source

Was this solution helpful to you?

Just Added Q & A:

Find solution

For every problem there is a solution! Proved by Solucija.

  • Got an issue and looking for advice?

  • Ask Solucija to search every corner of the Web for help.

  • Get workable solutions and helpful tips in a moment.

Just ask Solucija about an issue you face and immediately get a list of ready solutions, answers and tips from other Internet users. We always provide the most suitable and complete answer to your question at the top, along with a few good alternatives below.