From the tutor2u blog comes this tale of mafia involvement in waste disposal and the effect on the local commumity. It's summarised at the link, but there atre also hyperlinks to the story in 2 papers and the BBC
http://www.tutor2u.net/blog/index.php/economics/dioxin-contamination-and-illegal-dumping-of-waste/#When:12:45:00Z
a) Explain what the negative externality is and why it is an externality
b) What actions could the Italian government take to reduce the market failure?
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