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2. (a) Why the market equilibrium output is lower than the social opti- mal in the case of positive externalities; but higher in the presence
2. (a) Why the market equilibrium output is lower than the social opti- mal in the case of positive externalities; but higher in the presence of negative externalities? (b) What are some of the potential problems when no one can claim property rights for a good or service? (c) What limits the applicability of Coase Theorem in solving the problem of externalities? its microeconomic question not accounting
2. (a) Why the market equilibrium output is lower than the social opti- mal in the case of positive externalities; but higher in the presence of negative externalities?
(b) What are some of the potential problems when no one can claim property rights for a good or service?
(c) What limits the applicability of Coase Theorem in solving the problem of externalities?
its microeconomic question not accounting
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