Explain the difference between a positive and negative externality. In your analysis, make sure to provide an example of each type of externality. Why does the government need to get involved with externalities to bring about market efficiency? What solutions need to be provided for your examples?
In economics, an externality is defined as the cost or benefit that effects or is enjoyed by a party that did not take place in the transaction. It is also defined as a consequence of an economic activity that is experienced by third parties who were not partisans to an event (Amacher & Pate, 2012). Based on the result that an event brings to the third party or the society,…………………..
APA 483 words