Gov&Business
Transcript of Gov&Business
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Government & Business
Public good
(Reveal preference)
Reveal preference Public good
Externalities ()
- External cost cost 3
- External benefit benefit 3
direct cost direct benefit
cost External cost
Social cost= Private cost + External cost
Social benefit= Private benefit + External benefit
External benefit External benefit
1. 2.
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External cost External cost
Cost of
operation 2