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Mpc tax quantity - PowerPoint PPT Presentation

Externalities and the Environment

Externalities and the Environment. What is an Externality?. When a person/firm does something that affects the interests of another person or firm without affecting prices. Examples: Traffic/telephone/internet congestion Over grazing New fences Building a road. Does not Affect Prices?.

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Mpc tax quantity - PowerPoint PPT Presentation

Externalities and the Environment