Explain the impact of external costs and external benefits

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Reference no: EM13827003

Question:

(a) Explain the impact of external costs and external benefits on resource allocation;

(b) Why are public goods not produced in sufficient quantities by private markets?

Explain your choice.

(i) The Judicial system ................................................................................... Yes/No

(ii) Pencils ..................................................................................................... Yes/No

(iii) The quarantine service ............................................................................... Yes/No

(iv) The Great Wall of China................................................................................... Yes/No

(v) Contact lenses .......................................................................................... Yes/No

Additional Information:

The question is related to economics and it is explain about externalities affecting resource allocation, public goods and their implication on the profit of a firm have been answered.

Reference no: EM13827003

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