For an externality to exist who must receive benefits from childcare?

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Expert Solution

Externality is a situation when the third party receives the benefit of an economic transaction between two people. if there is childcare in the market then the person having a child and with it the whole society shold benefit from a better child care assuming this will make a healthier and smarter child.

So, for the externality to exist, the third person should exist in the market. for example whole society.

Rahul Sunny answered 2 years ago

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