Explain the impact of external costs and external benefits


Problem

1. Suppose coal-burning firms are emitting excessive pollution into the air. Suggest two ways the government can deal with this market failure

2. Explain the impact of external costs and external benefits on resource allocation.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain the impact of external costs and external benefits
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