What is an externality? Why might it create a problem for market allocation?

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What is an “externality”? Why might it create a problem for market allocation?

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Managerial Economics Markets and the Firm

ISBN: 978-0618988624

2nd edition

Authors: William Boyes

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Question Posted: Sep 27, 2014 06:11 AM

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What is an externality? Why might it create a problem for market allocation?

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An externality occurs when all the costs or benefits are n...View the full answer

Managerial Economics Markets and the Firm

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