managerial economics
Is it always necessary for government to intervene and internalize the profit and the cost externalities? Illustrate your answer using a real world example.
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In most cases, it is essential for a government to interfere in the cost externalities. This situation often arises when there is the presence of negative externalities like pollution. This issue is an element with the capability to affect businesses like tourism (Allen, Weigelt, and Doherty, Mansfield, 2012). It is hence crucial for a government to interfere in such instance…
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