Explain why, in a market with negative externality, too much output (more than the efficient amount)...

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Explain why, in a market with negative externality, too much output (more than the efficient amount) is produced and sold and positive externality, too little output (less than the efficient amount) is produced and sold. If you use a diagram in your answer, make that diagram large and label all axes, curves, and points.

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Answer 1

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Explain why, in a market with negative externality, too much output (more than the efficient amount)...

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