Why don't people take into consideration the external costs of their actions and reduce the amount of externalities?

What will be an ideal response?

People have no incentive to take into consideration the external costs of their actions. Since their utility or income would be lower if they bore all the costs associated with their activities, most people will not do so voluntarily.

Economics

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Why does marginal cost eventually rise as output increases?

What will be an ideal response?

Economics

Which of the following policies could lead to a deadweight loss?

A) price ceilings. B) price floors. C) policies prohibiting human cloning. D) all of the above E) A and B only

Economics