Answer:
British believed that most Southerners were Loyalists and that if they gained territory in the South, the Southern Loyalists would hold it for them. Believed that large number of Southern slaves would join them in return for promise of freedom.
Only the private sector can create both positive and negative externalities.
1. Fax machine
2. AT&T's picturephone
3. General Motors' autonomous car (Firebird)
