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Tax breaks are given to property owners who install fire prevention equipment because it reduces the potential of fires spreading to nearby buildings. The equipment
Tax breaks are given to property owners who install fire prevention equipment because it reduces the potential of fires spreading to nearby buildings. The equipment creates a positive externality (its beneficial for the homeowner AND to the local building owners). What measures could be put in place for business owners in a particular area to reduce or eliminate the production of negative externalities? Do external costs play a role? Can the negative externalities be eliminated? Explain..
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