Question: Write a short essay on externalities and the so-called Coase theorem. As part of your answer make sure that you discuss the circumstances under which

Write a short essay on externalities and the so-called Coase theorem. As part of your answer make sure that you discuss the circumstances under which private markets are most likely to come up with effective private solutions to the problem of externalities. In that context make sure to include at least one specific instance of a situation in which an effective market solution is feasible and also at least one example of a situation in which a private market solution would be all but inconceivable.

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