Economics · Market Failure and Externalities

Examine the following statements regarding Market Failure and Externalities: I. A negative externality causes the Social Marginal Cost to exceed Private Marginal Cost. II. In the presence of positive externalities, the market produces more than the socially optimal quantity. III. Public goods are subject to the free-rider problem because they are non-excludable. IV. The Tragedy of the Commons occurs with public goods, not common-pool resources. Which statements are CORRECT?