Negative Externalities

Watch the video by Jacob Clifford( https://www.youtube.com/watch?v=ha-ssoI6S0Q) and answer the following questions.

1. Who bears the cost of negative externalities? 2. What specific cost does the supply or MC curve represent in the free market when we deal with externalities? 3. How would you describe the major problem that economics sets out to solve when it comes to negative externalities? 4. Does the MC curve represent all costs involved in a negative externality? Explain your answer. 5. Where do we nd the optimal quantity of output of a good or service in an externality graph? 6. How would we know if there was too much output being produced in the market? How would we know if there was not enough output being produced in the market? 7. What does the government solution of negative externalities do to the S or MC curve? 8. If there was too much output being produced in the case of a polluting rm, how might this problem be solved and what effect would this have on your graph of this situation? 9. Before the problem of negative externalities is solved, what can you say about MSC and MSB? 10. After the problem of negative externalities is solved, what can you say about MSC and MSB