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:

Executor

The personal representative appointed to administer the estate of a person who died leaving a valid will.

Beneficiaries

Individuals or entities designated to receive the benefits or proceeds from insurance policies, trusts, wills, or other contracts.

Testator

An individual who has made a will or testament, in which they designate the distribution of their estate after their death.

Issue

Lineal descendants such as children and grandchildren. This category of persons includes adopted children.