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The Diagram Below Illustrates a Negative Externality

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The diagram below illustrates a negative externality. S is the marginal private cost and S1 is the marginal social cost. The diagram below illustrates a negative externality. S is the marginal private cost and S<sub>1</sub> is the marginal social cost.   Using this diagram, demonstrate graphically and explain verbally how the government can use a tax incentive to eliminate the problem caused by the negative externality. Using this diagram, demonstrate graphically and explain verbally how the government can use a tax incentive to eliminate the problem caused by the negative externality.


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Hard Drive

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Photos App

A software application designed for organizing, editing, and sharing photos stored on a device.

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The act of duplicating data or files from one location to another within a computer or over a network.

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