Give the Definition of "Externality" and Indicate Why Externalities Can

question 13

Essay

Give the definition of "externality" and indicate why externalities can result in a failure to achieve equality between social marginal cost and social marginal benefit. Demonstrate your answer graphically with a negative externality.

---

Definitions:

Wilderness Guide

A professional who leads, instructs, or assists people in navigating through and understanding natural, undeveloped areas.

Cross-Country Highway

A type of road or highway designed to facilitate long-distance travel across a country, often connecting multiple states or regions.

Traffic Flow

The movement of vehicles along roads and streets, as analyzed to improve efficiency and reduce congestion.

Computer Crashed

A sudden malfunction or failure of a computer system, leading to an inability to operate properly or access data.