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27-09-2017
Business

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Suppose a firm that produces for this market is able to dump toxic chemicals into a river next to its factory, which poisons wildlife and harms the health of nearby residents, who have no business with the company. this scenario can be characterized as , which is an example of .

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07-10-2017

This can be characterized as an externality, which is an example of market failure. In such cases, quantity of output produced is greater than the efficient quantity.

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