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write this post in different words. Externalities: This happens when one economic actor's activities have an impact on others, either positively or negatively. For example,

write this post in different words. Externalities: This happens when one economic actor's activities have an impact on others, either positively or negatively. For example, a plant may emit pollutants that harm the environment, but it is not required to pay for this cost. As a result, the market does not allocate resources efficiently since the costs of pollution are not internalized

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