Here's a reminder about something we talked about in class. Please don't forget!
In "Forms and Docs": content_not_commonsense
One of the homework problems asks you to calculate a present value, but requires a factor that isn't on the table in the book. Here's an online tool that will give you factors that are outside those provided by the text:
Hubbard and O'Brien does a not-so-great job of explaining where the deadweight loss arising from an externality comes from.
So I made a little exhibit to try to break it down a bit. I chose the positive externality (benefit) case to illustrate. Can you figure out how to do the negative externality (cost) case?
Go to "Forms and Docs" to see the exhibit.
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