A private solution to externality.

Question

Want to see the full answer?

Answer 1

Question

Chapter 10.3, Problem 3QQ

To determine

A private solution to externality.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Give typing answer with explanation and conclusion Why the market tends to fail when dealing with environmental issues? It is said many externalities in environmental economics have features that are similar to that of public goods. We know that the provision of some public goods such as lighthouse can be solved through the market rather effectively. What makes environmental goods such as clean air different from other public goods such as lighthouse? Why is it more difficult to solve the provision of clear air through the market?

1. Governments and pharmaceutical companies rushed quickly ahead to develop a vaccine. Vaccinations and immunizations are examples of positive externalities. A positive externality is when an activity creates a benefit for those who are not involved in the transaction, a third party. Let’s examine the vaccination of Covid-19 as a positive externality. Question: Why is the Covid-19 vaccination considered a positive externality? 2. Considering the information provided and your responses to Question 3 explain the potential unintended consequences of each one of these polices. Which policy would you enact and why?

The graph below depicts the market for a good with what type of externality present? Price 22 20- 18 16 4 12- 10- co 19090 6 A 2 0 To 0 20 40 60 80 100 120 140 Quantity Social Cost D 160 O Negative production externality Positive consumption externality O Negative consumption externality O Positive production externality Private Cost 180 200