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Homework answers / question archive / Externalities can have a positive or a negative effect on society members
Externalities can have a positive or a negative effect on society members. Come up with a creative example of a market (good or services) in which all of the costs are not born by suppliers (negative externality) and not all benefits are enjoyed by consumers (positive externality) concurrently. How would you deal with this market as a policy-maker?
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