What step is omitted from the three-step recipe to analyze externalities in Table 3? (Note: Steps are not necessarily in order.)
$$\begin{array} { | l | }
\hline \text { Table 3: Steps in the Three-Step Recipe to Analyze Externalities } \
\hline \text { Predict the equilibrium outcome. } \
\hline \text { Find the socially optimal outcome. } \
\hline
\end{array}$$

Question

What step is omitted from the three-step recipe to analyze externalities in Table 3? (Note: Steps are not necessarily in order.)
$$\begin{array} { | l | } 
\hline \text { Table 3: Steps in the Three-Step Recipe to Analyze Externalities } \
\hline \text { Predict the equilibrium outcome. } \
\hline \text { Find the socially optimal outcome. } \
\hline
\end{array}$$

Quizplus · Accepted Answer

The omitted step is assessing what externalities are involved, which is crucial for understanding how external costs or benefits affect the equilibrium and socially optimal outcomes.

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