Role of government in addressing implication of externality


What is an externality? Provide at least three examples. How does one of the examples you provided affect the market outcome? What is the role of government in addressing the implications of an externality you provided as an example? Is it possible that a government's solution to a market failure would worsen the failure? Explain your answer.

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Microeconomics: Role of government in addressing implication of externality
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