Anonymous__02
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I’ve looked everywhere online but I still don’t get exactly how to draw them. When drawing the diagram, are you showing the problem that the externality creates or are you fixing the problem? Also, in a negative externality in consumption, why is the formula MSC>MPC if consumption externalities only affect the demand curve , should it not then be MPB>MSB? Also, just an explanation on all externalities. Thanks
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TSR Jessica
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Sorry you've not had any responses about this. Are you sure you've posted in the right place? Here's a link to our subject forum which should help get you more responses if you post there.
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Anonymous__02
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