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Chapter Externalities 10. Externalities Externality – The uncompensated impact of one person’s actions on the well-being of a bystander – Market failure
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Externalities. Externality: The uncompensated impact of one person’s actions on the well-being of a bystander Creates market failure – Negative externality:
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Chapter Externalities 10. Market Failure – When the free market may not provide economically efficient (ideal) outcome Sources – Too little competition
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