Question

Which of the following is a reason for the inadequacy in ad hoc attempts— internalizing external costs and assigning property rights to unowned goods such as wild species—to repair market failures?

Answer 1

Which of the following causes inadequacy in ad hoc attempts—internalizing external costs and assigning property rights to unowned goods such as wild species—to repair market failures?

a. The backcasting problem

b. The fungibility problem

c. The biomimicry problem

d. The first-generation problem

Answer:

Option D is correct.

Explanation:

A type of market breakdown where business can only correct the problem or break down after it had occurs because it is the first time this kind of problem is happening.