Question: What is meant by externalities? Explain why positive and negative externalities will be produced at levels that are respectively lower and higher than the levels

What is meant by externalities? Explain why positive and negative externalities will be produced at levels that are respectively lower and higher than the levels that are socially efficient.

Step by Step Solution

★★★★★

3.41 Rating (157 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Externalities refer to the unintended consequences of economic activities on third parties who are not directly involved in the activity These consequ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Briefly describe ASCII and Unicode and draw attention to any relationship between them. [3 marks] (b) Briefly explain what a Reader is in the context of reading characters from data. [3 marks] A...

re Regular Languages and Finite Automata (a) Let L be the set of all strings over the alphabet {a, b} that end in a and do not contain the substring bb. Describe a deterministic finite automaton...

ttth Suppose that the sequence of bags {Bn | n N} is recursively enumerated by the computable function e(n, x) = fn(x), [7 marks] Hence prove that the set of all recursive bags cannot be recursively...

1. All the answers below are necessary conditions for a firm to be able to use segment pricing, except: The firm faces a downward sloping demand curve The firm can distinguish between different...

Erasmus Platform for Sustainable Value Creation, Case Study: McDonald's 3) analysis of the case study incorporating the course learning objectives (A) and case study questions (B). Use the case study...

Help complete study guide. Questions (1-4) no need to do FRQ 4:55 7 OI LTE X READ ONLY - This is an older file format. To make changes, m... more Upgrade a copy 2. The government has decided to take...

1. (06.01 MC) Use the graph to answer the question that follows. (3 points) Which of the following identifies the socially optimal output and price level? P 1 and Q 1 P 1 and Q 3 P 2 and Q 2 P 2 and...

Flag question: Question 13 FoisPas, a French restaurant in Westwood, has decided to increase the price of its Sunday brunch from $30 to $34. Following this price increase, the number of reservations...

HI PLEASE ANSWER ALL 1. Assume the market for apples is initially in equilibrium. Which of the following will result in a higher equilibrium price of apples? a. An increase in both the demand for and...

J. of the Acad. Mark. Sci. (2013) 41:389-399 DOI 10.1007/s11747-013-0331-z CONCEPTUAL/THEORETICAL PAPER Elevating marketing: marketing is dead! Long live marketing! Frederick E. Webster Jr. & Robert...

Draw and discuss the flow of any FMCGs supply chain and describe the various stages involved?

Paragraph (B) Bromley Ltd acquired a 20% interest in Coverley Ltd for $150 000 cash on 1 July 2018. The directors of Bromley Ltd believe this investment represents significant influence over the...

Evaluate the integral using Integration b y Parts, substitution, o r both i f necessary. t a n ( 3 x 2 ) x 2 d x C for the arbitrary constant. Absorb into C a s much a s possible. t a n ( 3 x 2 ) x 2...

Let M = {m1, m2,..., mr} and N = {m1, m2,..., mr, v} be two sets of vectors from the same vector space. Prove that span (M) = span (N) if and only if v span (M) .

Let M = {m1, m2, .m,} and N = {m1, m2,., m,, v} be two sets of vectors from the same vector space V over a field F. Prove that span{M} = span{N} if and only if v E span{M}. %3D .....

Each of the random variables X and Y takes only 3 values {(1,2,3) with the following probabilities : 1 2 3 10 1/6 1/6 y 2 1/6 0 1/6 0 1/6 3 1/6 1/6 0 The expected value of X is: Select one: O a. none...

The cross correlation function of a jointly wide sense stationary processes is even Select one: O True O False

Case closure can often be a difficult part of the case management process. What are some difficulties with closing cases - for clients as well as case managers? Please answer this question in a short...

Salespeople, whether selling life insurance, automobiles, or pharmaceuticals, typically get paid on commission instead of a straight hourly wage. How does paying a commission help solve the...

Look again at Solved Problem 29.3, where the saving and investment equation S = I + NX is derived. In deriving this equation, we assumed that national income was equal to Y. But Y only includes...

Historically, the production of many perishable foods, such as dairy products, was highly seasonal. As the supply of those products fluctuated, prices tended to fluctuate tremendously-typically by 25...

6. Which functions are controlled by the sympathetic nervous systempg78 Which are controlled by the parasympathetic nervous systempg78

13. Which lobe of the cerebral cortex includes the primary motor cortexpg78

1. Examine the effects of brain damage. After damage or temporary inactivation, what aspects of behavior are impairedpg78