a. Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. b. How might
Posted: Sun Jul 03, 2022 6:50 am
a. Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. b. How might the government help to eliminate this inefficiency? Describe one market-based policy that can eliminate the inefficiency (be specific). c. Why are corrective taxes or subsidies preferred to regulatory policies as methods remedy externalities?