Chapter 14 - Market Failure and the Role of the Government

Consumers

________ are more efficient paying a positive price- a price equal to the marginal cost of production- because they are also competitors in consumption.

private commodities

Although ________ are excludable, producers can charge a premium for them, incentivizing them to be produced.

market economy

A(n) ________ will lack the incentives to produce efficient amounts of the good if one or both of these qualities are missing.

Emissions taxes

________ are levies based on how much pollution a company creates.

public good

Good that is both nonexcludable and nonrival in consumption.

Environmental standards

________ became widely used in the 1960s and 1970s, and they were a huge success.