Answered

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Negative externalities of open resources arise because:

A. There are no enforceable property rights to open-access resources.
B. Consumers have to pay for each unit of production.
C. The government undertakes the distribution of these resources.
D. These are private goods and government enforces property rights.
E. These are available in finite amounts.

Sagot :

GinnyAnsweridn

Final answer:

Negative externalities of open resources occur due to social costs not being considered in production decisions, leading to market failure and the need for government intervention.


Explanation:

Negative externalities of open resources arise because these are public goods with social costs that are not accounted for in production decisions, leading to market failure. Government intervention like regulations or market-based policies is necessary to address these issues and avoid inefficient resource allocation. For example, pollution from factories impacting the environment and communities is a common negative externality that needs to be addressed.


Learn more about negative externalities of open resources here:

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