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When There Is a Positive Externality in a Free Market

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When there is a positive externality in a free market, too much of the good is produced and consumed.


Definitions:

Dread

An intense fear or apprehension about something that is about to happen or that might happen.

Subsides

Decrease in intensity or severity; often used to describe the diminishing of symptoms or conditions over time.

Self-actualize

The attainment and utilisation of one's skills and possibilities, viewed as an innate motivation or requirement existing in every person.

Humanists

Approach focusing on human values and concerns, emphasizing personal freedom and responsibility.

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