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lesya692 [45]
3 years ago
14

Consider the following scenario:

Business
1 answer:
frosja888 [35]3 years ago
7 0

Answer:

The correct Answer is D.

Explanation:

The topic under question is found in economics of business as Market Failure. The sub topic is Externalities.

<em>Externalities occur when one person's actions (most especially the corporate person under law) affect another person's well-being and the relevant costs and benefits are not reflected in market prices.</em>

An example is given in the question.

The government can sometimes try to solve this through regulation, taxation, and subsidies. However, <em>private solutions </em>do exist as well. An example of such is <em>Charities.</em>

<em>Charities</em> utilize donations from private individuals towards eliminating or stopping actions that result in negative externalities or encouraging behaviors that bring about positive externalities. The former can be seen in the case of organizations that preserve the environment, while the latter is exemplified through organizations that generate money for education.

Cheers!

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Answer:

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