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Unformatted text preview: marginal cost. The market may also be able to achieve the proper MB=MC balance on the issue of airline flight scheduling because carriers will add as many flights to their routes as there are passengers who are willing to pay for these flights, so that the marginal benefit of adding flights is equal to the marginal cost. However, when considering the negative externality of air pollution, some degree of government regulation may be necessary to uphold the socially optimal MB=MC....
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This note was uploaded on 02/17/2009 for the course ECON 101 taught by Professor Burkhauser during the Spring '08 term at Cornell University (Engineering School).
- Spring '08