Describe a real-world negative externality

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In Section 1, externalities are introduced as well as market failures, where the socially optimal output is not the same as what the market produces by itself. For this discussion,  task is to:

  1. Describe a real-world negative externality.
  2. In your externality, identify who are the participants in the market and who receives the spillover
  3. How are the incentives for the firm misaligned from the rest of society to make the externality?

Reference no: EM133259874

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