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    cost of externalities

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    "The reason the government has to step in and 'internalize' benefit and cost externalities is because people are basically selfish." Do you agree with this statement? Explain.

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    I fully agree with the statement that the government has to exert itself on the people to help them internalize benefit and cost externalities. People often tend to keep their house clean and throw out their rubbish on the neighbors' doorsteps. People happily take groceries in plastic bags at supermarkets and do not give any thought to what will ...

    Solution Summary

    The cost of externalities is discussed.