ECON MICRO
5th Edition
ISBN: 9781337000536
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 17, Problem 2.4P
To determine
The net gain if the government fixes the price above the optimal level.
Concept Introduction:
The positive or negative consequences faced by an unrelated third party or parties due to the performance or undertaking of an economic activity are known as externalities. The cost of economic activity incurred by a third party or parties is known as negative externalities.
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