Explain why externalities prevent the attainment of efficiency when goods are traded in competitive markets.

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Public Finance A Contemporary Application Of Theory To Policy

ISBN: 9780538754460

10th Edition

Authors: David N Hyman

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Question Posted: Aug 11, 2023 04:15 AM

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Explain why externalities prevent the attainment of efficiency when goods are traded in competitive markets.

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Externalities occur when the production or consumption of a good or service affects other parties who are not directly involved in the transaction The...View the full answer

Public Finance A Contemporary Application Of Theory To Policy

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