ECON MACRO
5th Edition
ISBN: 9781337000529
Author: William A. McEachern
Publisher: Cengage Learning
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Chapter 3, Problem 3.12P
To determine
The problems with letting the market determine the amount of a certain good to be produced if there is an external cost, or negative externality, associated with its production.
Introduction:
Externality is the cost or benefit of a commodity that affects neither the producer nor the consumer but the third party in a transaction. Example of such externalities is the air pollution created by
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