23. When Ben wears his red shirt, it bothers Sally, who hates the color red. Since Bens...
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23. When Ben wears his red shirt, it bothers Sally, who hates the color red. Since Ben’s wearing of a red shirt imposes a cost on Sally, it involves an externality. Would it therefore be correct to have the government intervene and forbid Ben from wearing a red shirt? (LO8-5)
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