Which option best characterizes the following scenario?

Adnel Company sells purified water products and advertises the great, clean taste and reasonable cost. It does not disclose the distillation process, which sends harmful chemicals into nearby streams, killing fish and wildlife.

monopoly

externality

free market

market failure

Question

Conor Bender

Chemistry

29 November, 23:50

Which option best characterizes the following scenario?

Adnel Company sells purified water products and advertises the great, clean taste and reasonable cost. It does not disclose the distillation process, which sends harmful chemicals into nearby streams, killing fish and wildlife.

monopoly

externality

free market

market failure

+2

Answers (1)

Know the Answer?

Wayne Doyle · Answer 1

Externalities are costs (negative externalities) or benefits (positive externalities), which are not reflected in free market prices ... Market failure is a situation in which the free market leads to a misallocation of society's scarce ... and the killing of fish is not a cost that it would directly have to bear