describe a real-world example of a negativeexternality.

• Be specific about the difference between the private and social costs associated with the activity that creates theexternality.
• Describe how the difference between social and private costs impacts the amount of the good/activity provided in equilibrium.
• Relative to the social optimum, is there too much or too little of the good provided in equilibrium?
• Provide your best guess of the size of theexternality(in terms of dollars).
• How can the government "fix" the problem created by theexternality(achieve the social optimum in equilibrium)?