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Economics

Explain why externalities can make market outcomes inefficient using the demand and supply model.

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This discussion is to enable you to reflect on the following objectives for Module 3:
Explain why externalities can make market outcomes inefficient using the demand and supply model.
Determine why private markets fail to provide public goods and why people tend to overuse common resources.
Analyze the various government policies aimed at solving the problem of externalities, the provision of public goods, and protecting common resources.
Instructions:
Review the article indicated below and respond to the following discussion prompts.
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