Give an example of a market/industry where a negative
externality in present.
a. What is the difference between the private, unregulated,
market output (Q)/price (P) and the optimal, regulated, market
output (Q)/price (P). Explain why/how this differencecomes about.
Use and explain private cost, social cost, and external cost.
b. Explain the source of dead weight loss in such a market.
Interpret this dead weight loss.
c. Provide two policy solutions to this problem. Use a
command-and-control option and a market-based...