Unit #2 Journal

Some experts define externality as a cost or benefit imposed on a third party who did not agree to incur the cost or benefit. Other experts define market efficiency as a place where prices always fully reflect available information. Deliberate on a public good in your community, such as streetlights. Illustrate the paradox of market efficiency and potential externalities. Your journal entry must be at least 200 words in length. No references or citations are necessary.