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Unformatted text preview: taxes. 3. Graph and explain how a positive externality can be internalized with the appropriate level of subsidy. 4. State Coase's theorem and understand its significance. 5. Define a public good and understand how public goods and their demand and equilibrium quantity differ from private goods. 6. What are some of the most important characteristics of public goods? 7.Given individual demand curves for a public good, you should be able to derive the aggregate demand and discuss the equilibrium quantity and prices both graphically and algebraically....
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This note was uploaded on 02/01/2008 for the course ECON 101 taught by Professor Hansen during the Spring '07 term at University of Wisconsin.
- Spring '07