Suppose a candy producer and doctors at a hospital seek a private remedy to an externality problem. This means the

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Quizplus · Accepted Answer

When two parties affected by an externality problem seek a private remedy, they negotiate with each other to internalize the externality. This can involve the candy producer compensating the hospital for any harm caused by the candy's externalities, or the hospital paying the candy producer for any benefits received from the candy's externalities. This private solution is often preferable to government intervention, as it allows the parties involved to come to a mutually beneficial agreement without imposing a one-size-fits-all solution on all parties.

Suppose a Candy Producer and Doctors at a Hospital Seek