Question
What divergencies arise between equilibrium output and efficient output when (a) negative externalities and (b) positive externalities are present? How might government correct these divergences?
What divergencies arise between equilibrium output and efficient output when (a) negative externalities and (b) positive externalities are present? How might government correct these divergences? Cite an example (or text example) of a external cost and an external benefit?
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Microeconomics Principles, Problems and Policies
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
20th edition
978-0077660819, 77660811, 978-1259450242
