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Documents EXTERNALITIES Chapter 5. Externalities Externality – An activity of one entity that affects the...

Slide 1 EXTERNALITIES Chapter 5 Slide 2 Externalities Externality – An activity of one entity that affects the welfare of another entity in a way that is outside the market…

Documents The economics of externalities Today: Graphical analysis Private responses Public responses.

Slide 1 The economics of externalities Today: Graphical analysis Private responses Public responses Slide 2 Today More on the externality problem  Marginal damage will…

Documents More on taxation Today: Studying taxation graphically What should be taxed? Why?

Slide 1 More on taxation Today: Studying taxation graphically What should be taxed? Why? Slide 2 Changes in consumption due to taxes Recall that people typically consume…

Documents More on externalities Today: Positive externalities Highway congestion Problems Who is this? (Answer...

Slide 1 More on externalities Today: Positive externalities Highway congestion Problems Who is this? (Answer later) Slide 2 Previously: Introduction to externalities Markets…