What type of externality (positive or negative) is present in each of the following examples? Is the
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a. Mr. Chau plants lots of colorful flowers in his front yard.
b. Your next-door neighbor likes to build bonfires in his backyard, and sparks often drift onto your house.
c. Maija, who lives next to an apple orchard, decides to keep bees to produce honey.
d. Justine buys a large SUV that consumes a lot of gasoline.
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a This is a positive externality since other people enjoy looking at Mr Chaus flowers the marginal s...View the full answer
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