what is analogy for pollution
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in economics pollution is the textbook example for an externality, which occurs when a private cost is less than a social cost. so when a firm pollutes, it is harming society more than it harms itself, so there is no incentive for the firm to reduce production in order to reduce its pollution levels. thus, governments have implemented tax schemes and regulations to impose private costs on the firms. this extra cost increases the private cost to the level of the social cost, and an optimal level of pollution is reached. in this case, an analogy for pollution is any externality that a society faces. i just took a quick look at some common externalities on wikipedia and here some of the examples:
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Human beings.. that's coz we're the cause
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