Economy, asked by brilliantnkosi15, 10 months ago

explain externalities as acause of market failure without a graph

Answers

Answered by itzinnovativegirl129
2

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 An externality stems from the production or consumption of a good or service, resulting in a cost or benefit to an unrelated third party.

Externalities lead to market failure because a product or service's price equilibrium does not accurately reflect the true costs and benefits of that product or service.

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