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Give an example of a negative externality and draw a graph comparing and contrasting the market equilibrium and the socially optimal level of output Why are these different

Give an example of a negative externality, and draw a graph comparing and contrasting the market equilibrium and the socially optimal level of output. Why are these different? Does this mean that markets are inefficient in the presence of negative externalities? Why or why not?

May 26 2020 View more View Less

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