Business, 18.03.2021 01:40 Flaka2809

Assume that the (U. S.) Environmental Protection Agency determines that that hydraulic fracking (a type of oil and gas drilling) adversely impacts drinking water resources under certain circumstances. Neverthleless, ownership rights between homeowners and oil and gas companies are clear and enforced and there is little to no transaction costs, then over time we would most likely expect A. the market output of natural gas reflected in the competitive markets to be "too low" (relative to the socially optimal price) because of the negative externality. B. the market price of natural gas reflected in the competitive markets to be socially optimal C. the market price of natural gas reflected in the competitive markets to be "too high" (relative to the socially optimal price) because of the negative externality D. the market price of natural gas reflected in the competitive markets to be "too high" (relative to the socially optimal price) because of the positive externality

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Assume that the (U. S.) Environmental Protection Agency determines that that hydraulic fracking (a...