Question
Using a supply-demand diagram, demonstrate how a positive consumption externality leads to market inefficiency. In this particular case, what is meant by 'internalizing' an externality?
Using a supply-demand diagram, demonstrate how a positive consumption externality leads to market inefficiency. In this particular case, what is meant by 'internalizing' an externality? How should this positive externality be internalized? Explain.
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Microeconomics
Authors: Roger A Arnold
13th Edition
1337617407, 9781337617406
