Using a Graph, Show the Effects of a Negative Externality

question 206

Essay

Using a graph, show the effects of a negative externality. Where is the socially optimum point of output? How can it be achieved?

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Definitions:

Degree 3

A polynomial of degree 3 is a polynomial that has the highest exponent of its variable(s) as 3.

Sum

The result obtained by adding two or more numbers.

Scientific Notation

A way of expressing numbers that are too large or too small to be conveniently written in decimal form, using powers of ten.

Quadratic Polynomial

A polynomial of degree two, typically written in the form ax^2 + bx + c where a, b, and c are constants.