b) Why does a negative externality create a market failure and how can this market failure be solved by the government? Fully explain youn answer.

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A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

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A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

Q: How can the government solve this externality problem? Explain in detail.

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