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Explain why externalities prevent the attainment of efficiency when goods are traded in competitive markets.

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Explain why externalities prevent the attainment of efficiency when goods are traded in competitive markets.

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Externalities occur when the production or consumption of a good or service affects other parties who are not directly involved in the transaction The…View the full answer


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Related Book For  answer-question
Public Finance A Contemporary Application Of Theory To Policy

Public Finance A Contemporary Application Of Theory To Policy

ISBN: 9780538754460

10th Edition

Authors: David N Hyman

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Question Details
Chapter # 3
Section: Review Questions
Problem: 1
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Question Posted: August 11, 2023 04:15:39
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