(1) Please provide two firms in the real economy that generate negative and positive externalities respectively. (4’) (2
Posted: Mon May 02, 2022 8:06 am
(1) Please provide two firms in the real economy that generate
negative and positive externalities respectively. (4’)
(2) Explain why these firms generate negative or positive
externalities. (8’)
(3) Explain how to make sure each firm will produce at the
socially optimal points. (8’)
negative and positive externalities respectively. (4’)
(2) Explain why these firms generate negative or positive
externalities. (8’)
(3) Explain how to make sure each firm will produce at the
socially optimal points. (8’)