How can the government solve this externality problem? Explain in detail.

Q: What are positive and negative externalities

A: Externalities are the effects of economic activity on a third party, the costs or benefits of which…

Q: Externality is a problem that create market failure. How the externalities can be internalized to…

A: Externality causes market failure.Externality may be positive or negative and its effect causes…

Q: Which activity generates a positive externality? You buy a new jet-ski and find $5,000 under the…

A: In economics, positive externality refers to the situation when one's action will provide benefit to…

Q: Give solutions to the externality problem.

A: The situation that depicts either a benefit or a cost being caused by a producer not received or…

Q: An externality has marginal benefits MB = 24 - 2q, marginal social benefits MSB = 24 - q and…

A: A positive externality occurs when the production and consumption of a good / service benefits a…

Q: Why transaction cost has become the reason to solve an externality problem?

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: The Centers for Disease Control and Prevention estimates that every alcoholic drink consumed…

A: ‘Externality’ means the uncompensated impact of one person’s actions on well being of a bystander.…

Q: Choose a good or service that you would like to see the government provide more funding towards. 1.…

A: Externalities lead to market failure because a commodity or service's price equilibrium does not…

Q: What are positive and negative externalities, hint the ( causes, effects and the remedies.)

A: An externality is present whenever some economic agents' welfare (utility or profit) is directly…

Q: Consider the following event and identify which type of externality it creates: “…. Congestion…

A: 'Congestion caused by driving car to work' This means that too many drivers driving the car to work…

Q: Is there a 'zero-externality' solution when it comes to poor air quality from pig farming, being the…

A: A negative externality takes place when the process of producing commodity results in harmful,…

Q: How can we solve the externalities that are related to common resources and public goods? Select an…

A: Public goods are those goods which are freely available on the market and whose use does not affect…

Q: Refer to Figure 2. This market is characterized by a positive externality. a negative externality.…

A: Externality arises whenever one economic agent's activity affects the society or any other third…

Q: Use the concept of externalities to explain how we might answer the question of what owners may do…

A: An externality is a cost or benefit caused by a producer that is not incurred or received by the…

Q: Private markets fail to reach a socially optimal level when positive externalities are present…

A: There are two types of externalities: positive and negative externalities.  Positive externalities…

Q: Explain how providing education to all children in grades K-12 provides external benefits to…

A: We show thatt the positive externality is when the bystander bears the advantage of any activity.…

Q: Give an example of a negative externality that you have witnessed or are personally aware of. Who is…

A: One day, one of my neighbors was smoking in a public park with kids around. His smoking was…

Q: Question 8. In the absence of externalities, allocative efficiency is achieved at the Q where TR =…

A:

Q: DRAW THE POSITIVE EXTERNALITY CURVE AND EXPLAIN-

A: Positive externality means certain advantage to third person which is not involved in the…

Q: Using a supply and demand diagram, demonstrate how a negative externality leads to market…

A: Externalities means when the production of economic agents causes benefits or cost to others. When…

Q: What is a positive externality

A: The concept externality was introduced by economist Arthur Pigou. There are mainly  four type of…

Q: How external cost affect supply and demand

A: External cost:- These are those cost or benefits that effects a third party apart from buyer and…

Q: Explain the difference between positive and negative externalities along with an example.

A: Answer: An externality exists when some economic agent’s welfare (utility or profit) is directly…

Q: Give an example for a negative or positive externality and explain the inefficiency this negative or…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Identify a negative externality

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: A positive externality results when   A. someone pays for a good or service even though she is not…

A: Externality is the negative or positive spillover by the consumer or producer which affects the…

Q: Explain how government subsidies to producers solve externalities ?

A: Government pays a part of the cost to the firm in the form of subsidies. This in turn leads to…

Q: externalities

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

Q: Give three examples of activities accompanied by external costs and benefits.

A: The external costs and benefits are the various cost and benefits that are recieved to the third…

Q: How does government encourage positive externalities in the economy?

A: The situation in which either consumption or production of the goods/ services directly benefits the…

Q: If a firm does not pay for an external cost, who does? Why might there be a deadweight loss in a…

A: External costs referred to the costs borne by entities which were not caused directly by them. These…

Q: Why does a positive externality create a market failure and how can this market failure be solved by…

A: A cost or benefit resulting from the production or use of an item or service is known as an…

Q: Which of the following is an example of an activity generating a positive externality?

A: Positive externality means the production or consumption of goods or services create a positive…

Q: Describe social benefits and social costs in externalities.

A: An externality is created when an individual or firm performs an activity that affects the…

Q: How Governments Address the Existence of Negative Externalities in Environmental Economic Markets?

A: Considering the negative externality in the environmental economics, it refers to the uncompensated…

Q: If the production of a good yields a negative externality, then the social-cost curve lies ________…

A: Externality is the term refers the benefit enjoyed or cost suffered by the third party who did not…

Q: Which of the following instruments is government most likely to apply when confronted with a…

A: Positive externality occurs when production or consumption results in external benefits on third…

Q: What is an externality? What are the possible remedies (private or government) to externalities?

A: An externality is a cost or benefit of an economic action that is experienced by a distinct third…

Q: Governments pursue various policies to remedy the inefficiencies caused by externalities.  List and…

A: The administration can react to externalities in different ways. They can use command-and-control…

Q: When an economy and government face negative externality, describe the cause of this problem and…

A: Meaning of Externalities: The term externality refers to the situation where the cost is incurred…

Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.