Question: Explain the difference between a positive externality and a negative externality. Can both types of externalities result in market failure? Why or why not?

Explain the difference between a positive externality and a negative externality. Can both types of externalities result in market failure? Why or why not?

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Externalities occur when the actions of individuals or firms have an impact on third parties who are not directly involved in the transaction Positive ... View full answer

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