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Lady bird [3.3K]
3 years ago
9

The parties involved in an externality have an incentive to reach an efficient solution because

Social Studies
1 answer:
serg [7]3 years ago
8 0

The parties involved in an externality have an incentive to reach an efficient solution because all involved are better off when an efficient solution is reached.

An externality is a benefit or cost that affects someone who is not directly involved in the production or use of a good or service. When the solution is solved everyone has a better chance of reaching their goals due to the solution being found.

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