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Watch the following video and then answer the questions below: https://www.youtube.com/watch?v=AyfMCNfcWSc a) Indicate which type of externality appears from the video (positive/negative production/consumption). Represent this
Watch the following video and then answer the questions below: https://www.youtube.com/watch?v=AyfMCNfcWSc a) Indicate which type of externality appears from the video (positive/negative production/consumption). Represent this externality graphically with a demand and supply graph. Your graph should include the private marginal benefit curve, the private marginal cost curve, the social marginal benefit curve and the social marginal cost curve. Label the y- intercepts of the demand and supply curves, the equilibrium quantity, the efficient quantity and the deadweight loss. b) Briefly explain why this type of externality leads to an inefficient outcome. c) Propose one public-sector solution that could help restore efficiency in this market and represent the solution graphically
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