Define externalities, Define Externalities, determines that

Define externalities

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Externalities

Question 1: Suppose the U.S. government (Federal Agency) determines that cigarette smoking creates social costs not reflected in the current price of cigarettes in the market. To this end, a study recommends that the government can correct for the social cost (externality) by paying farmers not to plant tobacco used to manufacture cigarettes.

Reference no: EM132486763

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