QUESTION 4: Explain the meaning of positive and negative externality. Discuss the market failure created by a negative externality and how the government can solve the problem created by a negative externality. Fully explain your answer.

Q: What is the externality problem that Mike Cannon-Brookes implicitly claims would be reduced under…

A: Answer -

Q: Refer to the following table. The externality created by the production of refrigerators was $100.…

A: An external cost refers to the cost that arises to a third party as a result of economic activity or…

Q: Consider the following scenario: Suppose that a cafe enjoys a large increase in customers whenever…

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

Q: Explain this statement in detail with graphs. "With externalities, private market outcomes do not…

A: Externalities arises when actions of one person effects actions of other people. In other words , It…

Q: Automobile production imposes a negative externality. The government imposes a per-unit tax on…

A: (Q) Automobile production imposes a negative externality. The government imposes a per-unit tax on…

Q: Explain how to provide an efficient quantity of public goods  Describe how the delivery of public…

A: ANSWER.1 economy have two types of commodities: public goods and private goods. A person's private…

Q: suppose that scientists discover that this particular product has a significant Positive…

A: Dead Weight Loss: A deadweight loss could be a social group price incurred as a result of market…

Q: How can the government intervene to force consumers to internalize external costs associated with:…

A: Positive externality refers to the situation where the third party who does not involve in the…

Q: Government can internalize externalities by (choose one) taxing goods with negative externalities…

A: Externality: It is the cost or benefit that is incurred by the production or consumption of a good…

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: Statement: “Economists has stated that an economy has plunged to a market failure with an uptick in…

A: Market failure: Market failure is defined under neoclassical economics as a circumstance in which a…

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: Explain verbally and with a graph the concept of Positive Externalities. Explain all elements of the…

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

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: 24. Which of the following statements is correct? a. externalities are pathological when they have…

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

Q: Using practical examples, discuss how both positive and negative externalities are prevalent in…

A: Externality is the cost or benefit that comes from one agent but falls on another agent in the…

Q: The people of Chingola district a town in the Copperbelt province of Zambia are concerned over the…

A: Externality means spillover effect of economic activities motivated by profit or satisfaction on…

Q: What are the ways (at least 3) on how to mitigate the market failure in the economy. NOTE: causes of…

A: The markets are considered to be of utmost importance for the growth, and development of the…

Q: f both demand and supply decrease, there will be a decrease in the equilibrium output, but the…

A: Negative externalities: Negative externalities happen when the item as well as utilization of a…

Q: externality, either positive or negative,

A: Externalities: It refers to the cost which occurs in the process of production and consumption which…

Q: Compared to a good with no externalities, a good with a negative externality will appear to have…

A: Externality:- An externality can be explained as an expense or benefit incurred or gained by 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: In the article Examine the following market failures: public good, asymmetric information, positive…

A: Market failure : Market failure can be arises due to the over exploitation of resources or even due…

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

A: The positive externality demonstrates the benefit received by the 3rd party because of economic…

Q: Consider two ways to protect your car from theft. The Club (a steering wheel lock) makes it…

A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

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: 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: Explain 'negative externalities,' defined in class as 'hidden costs' making the difference between…

A: ▪︎Negetive Externalities:- Negative externalities happen when the item and additionally utilization…

Q: Which of the following is NOT a possible way of solving an externality problem of electricity…

A: A negative externality refers to negative spillover effects on the third party or on the society.

Q: Question 39 Which of the following is true of a negative externality? The government can use…

A: A negative externality refers to the cost borne by another party not related to the transaction due…

Q: A negative externality causes Select one: a. the social cost of production to be greater than the…

A: Externality is a situation in which the action of one party causes consequences to a third party who…

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: Knowledge creates positive externality; therefore, governments should intervene in the education…

A: Positive externality occurs when the consumption or production of a good causes a benefit to a third…

Q: explain why the positive externality associated with the production of a pure public good implies…

A: Externalities are side effects which are borne by the third parties.  Externalities could be…

Q: Match each of the following characteristics or scenarios with either the term negative externality…

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

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: The Coase theorem states that interested parties will negotiate to correct externalities if two…

A: The Coase theorem is based on the assumptions that, negotiation has no barrier (meaning zero…

Q: According to marginal analysis, in a market that experiences a positive externality, the market…

A: The advantages enjoyed by any of these third parties as a result of consumption or production are…

Q: 1) An excavating company pollutes a local stream with acid rock. 2) A family enjoys a Fourth of July…

A: Answer in step 2

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: Distinguish the true statements from the false statements. True False     Market failure occurs…

A: Externality refers to the spill over cost or benefits to the third party due to the activities of…

Q: Can policy market interventions cause consumer or producer surplus? Explain why using specific…

A: The policy market intervention is a way that interferes with the market. These can be price controls…

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: Do you believe higher education provides our economy with a positive externality? Why or why not

A: When a benefit accrues to a third party, it is called a positive externality. Negative externalities…