Question: What divergences arise between equilibrium output and efficient output when (a) Negative externalities (b) Positive externalities are present? How might government correct these divergences? Cite

What divergences arise between equilibrium output and efficient output when
(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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