When Ben wears his red shirt, it bothers Sally, who hates the color red. Since Bens wearing
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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 to wear a red shirt?
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The concept of externalities involves the impact of one persons actions on the wellbeing of others w...View the full answer
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