Externalities有分positive同negative架喎.....
1. What is meant by “internalizing” an externality? How can a negative externality be internalized?
2. Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. How might the government help to eliminate this inefficiency?
3. Using a supply and demand diagram, demonstrate how a negative externality leads to market inefficiency. How might the government help to eliminate this inefficiency?