What divergences arise between equilibrium output and efficient output when (a) Negative externalities (b) Positive externalities are
Question:
(a) Negative externalities
(b) Positive externalities are present? How might government correct these divergences? Cite an example (other than the text examples) of an external cost and an external benefit.
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a When negative externalities are present the equilibrium output will be greater than the efficient ...View the full answer
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Related Book For 
Economics
ISBN: 978-0073375694
18th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
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