题目内容
Negative externalities lead markets to produce a smaller quantity of a good than is socially desirable, while positive externalities lead markets to produce a larger quantity of a good than is socially desirable.
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The government can internalize externalities by taxing goods that have negative externalities and subsidizing goods that have positive externalities.
If the social value of producing robots is greater than the private value of producing robots, the private market produces too few robots.
According to the Coase theorem, if private parties can bargain without cost, then the private market will solve the problem of externalities.
Private parties may choose not to solve an externality problem if the transaction costs are large enough.
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