Externalities can not be positive. That is, there can be a third party cost associated with the production or consumption of a good or service, but there cannot be a benefit.  A) True B) False

Q: If a negative supply-side externality (also called a negative externality in production) occurs,…

A: Negative production externality occurs when the action of a supplier or a producer affects the third…

Q: If a market situation arises where the externality is so dangerous in even small quantities, which…

A: In a market, government uses different types of policies to deal with externality. Different policy…

Q: Efficiency in the presence of externalities

A: Efficiency cannot be achieved in the presence of externalities. Because in externalities someone is…

Q: This scenario pertains to microeconomics course-externalities focusing on Noise Pollution, which has…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If a positive demand-side externality (also called a positive externality in consumption) occurs,…

A: Externality is the cost or benefit caused by action of either consumer or producer which affects the…

Q: What would happen if the government subsidized consumption of this product because it has positive…

A: If a product has positive externalities, both supply and demand are considered to be involved, which…

Q: Suppose wearing face masks during the coronavirus pandemic leads to positive externalities, given…

A: Here, it is given that wearing face mask will lead to generate positive externality.

Q: Regulations regarding the disposal of hazardous waste are intended to prevent negative…

A: Negative Externalities are the cost borne by the third party without any consumption of the good.

Q: externality arises when a. not all costs and benefits are included in the price of a good b. a…

A: The market failure occurs when the market demand and supply do not deliver the efficient result.

Q: If a good is produced with negative externalities: A. private cost will be equal to social costs B.…

A: Negative externality exists when production and consumption have adverse impact on the third party.…

Q: Suppose the consumption of the good creates positive externality to consumers. Which of the…

A: In case of positive externality, social marginal benefit(SMB) exceeds the private marginal…

Q: Which of the following statements is (are) TRUE? I. In the face of a positive externality, a…

A: Externality is one of the economic concepts that is used to explain the market situation when the…

Q: Why are taxes, one traditional remedy for negative externalities, less than ideal for smoking…

A: Correct option is (1).

Q: Which of the following statements about externalities is correct? a. Education is the standard…

A: (H) All statements are incorrect.

Q: a) it is better than efficient b) the price of the product is too low c) the price of the product is…

A: The positive externalities are positive side effects of consumption or production that are not…

Q: Assume that there is a positive externality in the market for organic bananas. The graph below shows…

A: A cost or benefit incurred or received by a producer that is not paid for by that producer is known…

Q: An externality can create a difference between costs/benefits and costs/benefits.

A: Externalities are the harmful or beneficial side effects arise out of production or consumption of…

Q: Sulfur dioxide is a pollutant byproduct of nonrenewable electricity generation, resulting in a…

A: Externalities are side effects which are not accounted for by the market activities. or these…

Q: Externalities exist when     social costs are different from private costs. social costs are…

A: Meaning of Market Failure: The term market failure refers to the situation under which there…

Q: Give an ideal example of a positive (consumption) externality which leads to a market failure

A: A positive externality refers to a benefit that is extended to a third party, who did not choose to…

Q: The Coase theorem does NOT apply if  a. There is a significant externality between two parties.  b.…

A: The externality is when the action of one individual affect the welfare of other individual who does…

Q: In markets with positive externalities, the government should attempt to ________ activity by using…

A: Positive Externalities refer to the point that exists if the production and consumption of a…

Q: Distinguish carefully between a positive externality and a negative externality.  Explain your…

A: Externality is a cost occurred or benefit received by any third person who is not involved in the…

Q: Externalities can arise from both production and consumption. Negative production externalities…

A: Externalities are the costs and benefits of spillover effects. Externalities occur when someone…

Q: Why are spillover costs and spillover benefits also called negative and positive externalities? Show…

A: An externality is a cost or benefit being caused by a producer which is not either financially…

Q: All of the following are ways to cope with negative externalities blic choice ligatory controls…

A: ‘Externality’ is a cost or benefit that a person or a community receives but they have no control…

Q: a. When a firm imposes an external social cost (negative externality), the government should impose…

A: When the production or consumption of a product incurs a cost to a third party, it is referred to as…

Q: Which of the following are examples of negative externalities? A. Reduced spread of COVID-19 and…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: If positive externalities exist in a market, then OSocial cost is than private cost OSocial cost is…

A: Answer to the question is as follows:

Q: A glue factory and steel mill emit smoke and containing a chemical that is harmful if inhaled in…

A: The first choice will be to close all polluting factories permanently. This will totally remove the…

Q: Which of following would make it more likely that an externality problem could be solved efficiently…

A: Externality: An externality is a cost or benefit that is associated with the production or…

Q: Suppose an oil refinery produces air pollution that negatively affects the surrounding residents.…

A: To correct negative externality government generally impose tax per unit of output.

Q: If the production of a good causes a negative externality, the efficient level of output of that…

A: A negative externality is a cost borne by a third party as a result of an economic transaction. The…

Q: Sources of market failure include all of the following except   options:   taxes.   positive…

A: When resources are distributed in an ineffective way, a market failure develops. In other words, a…

Q: Production of good X creates positive externalities to all firms in Boulder. Free competitive…

A: Positive externality occurs when production or consumption creates external benefits to third party…

Q: Consider two types of cars: gasoline-powered cars and electric cars. Because conventional…

A: Externalities are the external costs or external benefits of economic activity to the third party…

Q: Market imperfections abound in Canada, brought about by externatilities. If a good that generates…

A: Externalities: Externalities are the cost or benefits that are incurred or received by the third…

Q: Which of the following is an example of a negative externality (additional social cost)? Multiple…

A: When the creation or consumption of a product results in a cost to a third party, this is known as a…

Q: Why the presence of the product variety externality does imply that there is too little entry of new…

A: * ANSWER :-  * Explanation :- A product externality leads to creation of a positive externality due…

Q: If production of a good is known to create external benefits a. Those benefits are larger than those…

A: External Benefit refers to additional benefit that is  to a third party as a result of a market…

Q: A negative externality is a cost associated with an action that is not borne by the person who…

A: A negative externality is a cost that is suffered by a third party due to any production or…

Q: Match the following with: overproduced, efficiency, underproduced, deadweight lost. 1) A negative…

A: In an economy, market efficiency refers to the ability of the firms to provide optimal amount of…

Q: An externality     is a private cost or benefit that results from the production or consumption of…

A: The externalities are the additional costs or benefits faced by the third party who is not involved…

Q: glue factory and a steel mill emit smoke containing a chemical that is harmful if inhaled in large…

A: Externality is one of the prominent reasons for market failure. That is actions or decisions of one…