1.Please list and discuss in detail three negative externalities that a firm has engaged in or may engage in (in theory).Which one of the three negative externalities that you have chosen to discuss is the most harmful, in your opinion?Why?

2.What, exactly, is a 'negative externality--- in your own words?Please give me an example of a negative externality that has affected you directly that is new and original---not discussed in the Lectures or in the textbook.

3.What does it mean to "internalize" a negative externality?In your example in #2, is the firm (or individual) generating the negative externality forced to "internalize" the negative externality?If so, how?If not, why not?

4.It has been stated that (in theory)"A car company must produce, distribute, and market (promote) and sell at least two million cars each year in order to succeed in the market."Now, this is just a model, and there are exceptions to this "rule", to be sure, but why is this statement true, in theory?What happens to a car company that does not produce and sell enough cars?Please list and discuss a car company that did not sell enough cars -- what happened to it?Why?

5.Should our government "bail out" a car company that cannot sell "enough" cars?Why or why not?