1. Provide one example of a negative externality and draw a graph depicting the socially optimal quantity and the
market quantity. Explain why this is a market failure. Explain the similarities between a negative externality and a
What is the price commonly called in the labor market?
Price in labor market is estimated by annual salary or hourly wages which is paid to a laborer.
In financial capital market is the rate of return or interest rate return of an investment
1. Watch this video: https:/www.youtube.com/watch?v=zcPRmh5AIrI
Explain the logic of the Coase Theorem. Explain under what conditions the Coase Theorem fails.
The logic of the Coase Theorem is that when negative externalities occur, the creator of the neg