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Describe two methods for correcting the inefficiencies caused by the presence of an externality in a market.

 Describe two methods for correcting the inefficiencies caused by the presence of an externality in a market. 

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Use of taxes- the government can impose... View the full answer

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Taxation Government can assume a part in decreasing negative externalities by exhausting merchandise when their creation... View the full answer

Externality occurs when action of one economic agent affects the action of other economic agent outside the market mechanism.... View the full answer

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