Explain the understanding of externalities by providing the

Reference no: EM13389995

Describe your understanding of externalities by providing an example of a positive externality and a negative externality. Why do positive and negative externalities lead to inefficiency in the market economy? How can externalities be addressed using the private sector to reduce market distortions of externalities? What government policies help deal with positive and negative externalities by reducing inefficiency?

Reference no: EM13389995

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