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What is meant by an externality?Give an example of both a negative externality and a positive externality.Without any sort of corrective policy, explain how the
What is meant by an externality?Give an example of both a negative externality and a positive externality.Without any sort of corrective policy, explain how the presence of additional external costs could lead to social costs outweighing social benefits and thus to a market failure. Graph a market that includes a negative externality, shading in the deadweight loss that would result from a private market decision alone (make sure to label your axes).
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