Which of the following regarding Market Failure are true?
A) Market failure occurs when the allocation of goods and services by a free market is not efficient.
B) Negative externalities are a key driver of market failure in environmental economics.
C) Positive externalities cannot lead to market failure.
D) Public goods like clean air are often subject to market failure due to non-rivalry and non-excludability.
1
A and B only
2
B and C only
3
A, B, and D only
4
C and D only