pronts 4. A market that generates a negative externality that has not been internalized generates an equilibrium quantity that is less than the optimal quantity. 5. A person is risk averse when the pain from losing a given amount of income is smaller in magnitude than the pleasure from gaining the same amount of income.
pronts 4. A market that generates a negative externality that has not been internalized generates an equilibrium quantity that is less than the optimal quantity. 5. A person is risk averse when the pain from losing a given amount of income is smaller in magnitude than the pleasure from gaining the same amount of income.
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information
Section: Chapter Questions
Problem 8QP
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Answer 4 and 5 please
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