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What are externalities; and how the government can fix it
Step by step
Solved in 3 steps
- why do externalities make market outcomes inefficient?How externalities and their impact the economy? explain the negative and the positive externalities and how it affects the market.What are Externalities? What some strategies the Government may use to address both positive and negative externalities
- Why are externalities considered a sign of market failure?Externality is a problem that create market failure. How the externalities can be internalized to improve market efficiency?I'm struggling with this question, I have an understanding of what negative externalities are, but I'm not sure how they are handled. Some help would be much appreciated!