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A positive externality arises in a situation where a third party, outside the transaction O fails to allocate resources efficiently. suffers from a market transaction
A positive externality arises in a situation where a third party, outside the transaction O fails to allocate resources efficiently. suffers from a market transaction by others. benefits from a market transaction by others. O pays a pollution tax to balance social costs
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Microeconomics
Authors: David Laibson, John List
Global Edition 1st Edition
1292079576, 978-1292079578
