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Discuss how the market failed to reach efficient outcomes in the podcast examples

Earth Science

Discuss how the market failed to reach efficient outcomes in the podcast examples. Consider the difference between private and social costs. Why, for example, would it make sense for the factory in the first example to continue polluting the air over the local community?

How does the source of pollution differ between the two examples, and how does this affect the optimal pollution level? How did these examples make the case for regulation?

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One point for a complete original response to the prompt, and/or one point for a meaningful response or follow up question to classmates' posts.

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