Write a one-page essay in which you explain why, in the absence
of government environmental regulation, competitive markets
Overproduce goods whose production involves the creation of
negative externalities. Be sure to provide an example of a good
that generate of negative externalities, explain the nature of
external costs and the two-supply curve, and describe how they lead
to different market equilibrium. Describe why allowing firms to
pollute amounts to production subsidy, and why this is inefficient,
creating an economic motive...