Solved: Wastewater runoff from large poultry farms adversely affects residents in

Chapter 0, Problem 1

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Wastewater runoff from large poultry farms adversely affects residents in neighboring homes. Explain the following: a. why this is considered an externality problem b. the efficiency of the outcome with neither government intervention nor a private deal c. how the socially optimal outcome is determined and how it compares with the no-intervention, no-deal outcome

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