Divergences arise between equilibrium


What divergences arise between equilibrium and an efficient output when (a) negative externalities and (b) positive externalities are present? How might government correct these divergences? Cite an example (other than the text examples) of an external cost and an external benefit.Other examples of external costs might include secondhand smoke, noise from the stereo down the hall, or road congestion. External benefits might be generated from outdoor Christmas lights, music from the stereo down the hall, or attractive landscaping in the neighborhood.

Request for Solution File

Ask an Expert for Answer!!
Other Management: Divergences arise between equilibrium
Reference No:- TGS0527928

Expected delivery within 24 Hours