What step is omitted from the three-step recipe used to analyze externalities in Table 1?
$$\begin{array} { | l | }
\hline \text { Table 1: Steps in the Three-Step Recipe to Analyze Externalities } \
\hline \text { Assess the externalities. } \
\hline \text { Find the socially optimal outcome. } \
\hline
\end{array}$$

Question

What step is omitted from the three-step recipe used to analyze externalities in Table 1?
$$\begin{array} { | l | } 
\hline \text { Table 1: Steps in the Three-Step Recipe to Analyze Externalities } \
\hline \text { Assess the externalities. } \
\hline \text { Find the socially optimal outcome. } \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct step omitted is "Predict the equilibrium outcome," which is essential for understanding how the market will function without intervention to address the externalities.

What Step Is Omitted from the Three-Step Recipe Used to Analyze