Question: What is externality? What is positive externality? What is negative externality? Give the examples. Show how the government can internalize the negative externality, positive externality.

What is externality? What is positive externality? What is negative externality? Give the examples. Show how the government can internalize the negative externality, positive externality. Use graphs in your answers.

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An externality is a cost or benefit caused by a producer that is not financially incurred or received by that producer An externality can be both positive or negative and can stem from either the prod... View full answer

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