15. A perfectly competitive fertilizer factory that produces large amounts ofpollution ( a negative externality) will from a social point of view :(a) Produce too little fertilizers;
(b) Produce the socially optimal quantity of fertilizers;(c) Produce too much fertilizers; (d)Produce too much fertilizers only if it installs pollution control equipment; (e) None of the above.
16. To reach on socially efficient output likely in the case of fertilizer factory(which produces pollution), the size of tax should be equal to: 17. Common property: 18. Public good are undersupplied by the market because: 19. The Coase theorem suggests that private negotiations between polluter and victim will lead to the correction of market failure when: (a) Parties possess information about the costs and benefits of reducing externality/pollution; (b) Negotiation or transaction costs are low; (c) People are willing to cooperate and do not engage in strategic bargaining; (d) Property rights are clearly recognized; (e) All of the above hold. 20.Consumption of pure public good: