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This would require the installation of pollution abatement equipment in its rate of output, or some combination of the 2. Finally, the government would need to determine the appropriate level of pollution as well as measuring the pollutants emitted to enforce such a regulation.
2) Positive Externalities- external benefits result in an under allocation of resources to the specific activity. There are 3 possible government corrections:
? Government Financing & Production- the government may choose to finance the desired additional production facilities so the right amount of the good will is produced...
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Common topics in this essay:
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