1. Negative Externalities

2. Cost outside the Market Effects the Market Causes inefficiency If brought into the market, would move the market to the efficient level.

3. “Guatemala is one of the world's most violent countries, with 52 murders per 100,000 people last year, according to a government estimate.”

4. In the market for (legal) guns, only the MPC is taken into account However, there is more to it (MEC) Illegal gun sales Illegal activity involving these guns If this MEC cost were realized in the market? (MSC) Quantity decrease Price Increase