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When a negative externality exists and the government does not intervene, which point best identifies the market equilibrium?

User Robzolkos
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Answer and Explanation:

When a negative externality exists, and the government does not intervene, then the market equilibrium is where Internal demand is equal to the internal cost and socially optimal equilibrium with negative externality exist where the internal demand is equal to the social cost.

User Dhirendra
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