1. Explain in your own words what is meant by external costs and external benefits. Why may market outcomes be less than ideal when externalities are present? 2. If sellers of toasters were able to...

1. Explain in your own words what is meant by external costs and external benefits. Why may market outcomes be less than ideal when externalities are present?

2. If sellers of toasters were able to organize themselves, reduce their output, and raise their prices, how would economic efficiency be affected? Explain.




May 26, 2022
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