What is NOT a source of market failure related to excessive spatial size of city (urban...
What is NOT a source of market failure related to excessive spatial size of city (urban sprawl)?
a)
Increasing population densities around the suburbs
b) Failure to take the amenity value of open space into account in housing development
c) Negative externalities from traffic congestion and air pollution generated from car travels
d) Distortion related to the financing of suburban infrastructure
Homework Answers
Option A
Explanation: Market failure takes place when market forces fail to efficiently allicate resources and result in the optimal output. High population density does not automatically lead to market failure.
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What is NOT a source of market failure related to excessive
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