An externality a. strengthens the role of the “invisible hand” in the marketplace. b. results in an equilibrium that does not maximize the total benefits to society. c. causes demand to exceed supply. d. affects buyers but not sellers.
Added by Molly J.
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It can be either positive or negative. a. An externality does not strengthen the role of the "invisible hand" in the marketplace. In fact, it can lead to market failures when the market does not allocate resources efficiently. b. An externality can result in an Show more…
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