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What is externality

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Reference no: EM132978965

What is externality? Consider the following event and identify which type of externality it creates: "Farmers switching from conventional farming to organic farming"

In your answer you need to explain and illustrate whether the private market will overproduce or underproduce, and how government can intervene to correct the problem. Explain with the aid of an appropriate diagram.

Reference no: EM132978965

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