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Consider a setting in which there is a negative externality, but no positive externality.It follows that

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Consider a setting in which there is a negative externality, but no positive externality.It follows that

Consider a setting in which there is a negative externality, but no positive externality. It follows that

▸

the market outcome is inefficient.

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the market outcome is efficient.

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MSC > MPC

▸

MPC > MSC

▸

a and c

Textbook

Economics

Edition: 12^th

Author: Arnold

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