Can the private market provide the good on its own

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1. Draw a supply-and-demand diagram to explain the effect of a negative externality that occurs as a result of a firm's production process.

2. The federal government tests the safety of car models and provides the test results free of charge to the public. Do you think this information qualifies as a public good? Why or Why not?

3. Define and give an example of a public good. Can the private market provide this good on its own? Explain.

Reference no: EM13241551

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