Asked by
Ethirajan chakaravarthy
on Oct 14, 2024
Verified
A trade between two people is an example of an externality.
Externality
A consequence of an economic activity experienced by unrelated third parties; it can be either positive or negative.
- Comprehend the principle of Pareto efficiency and its influence on market efficiency through externalities.
Verified Answer
AS
Learning Objectives
- Comprehend the principle of Pareto efficiency and its influence on market efficiency through externalities.
Related questions
The Efficient Amount of Air Pollution Is in General Independent ...
If There Are Negative Externalities in Production or Consumption, Competitive ...
If Your Consumption of Toothpaste Produces Positive Externalities for Your ...
A Condition in Which No Change Is Possible That Will ...
Free Markets, by Definition, Must Always Be Efficient