How can the government make market participants 'internalize the externality' in the case of a negative externality?

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How can the government make market participants 'internalize the externality' in the case of a negative externality? And the case of a positive externality?

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Economics

ISBN: 978-0134106243

6th edition

Authors: R. Glenn Hubbard

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Question Posted: Nov 25, 2017 02:25 AM

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How can the government make market participants 'internalize the externality' in the case of a negative externality?

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An externality is a situation where a persons consumption of a good affects the utility of another p...View the full answer

Economics

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