Question: (A) Explain, using an Edgeworth Box diagram, how externalities in consumption can cause economic inefficiency? [50 marks] (B) Discuss some of the proposed solutions to

(A) Explain, using an Edgeworth Box diagram, how externalities in consumption can cause economic inefficiency? [50 marks]

(B) Discuss some of the proposed solutions to the problem of externalities in consumption and production. [50 marks]

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