Explain the concept of a positive externality

Assignment Help Business Economics

Reference no: EM131007364

1. Explain how competition in markets can often provide incentives for the invention of new technology.

2. Using the ideas of social benefit and privaate benefit, explain the concept of a positive externality.

3. Why does new technology have positive externalities?

4. Why might a competitive market tend to provide too few incentives for the development of new technology?

Reference no: EM131007364

Questions Cloud

Profit maximization be the primary goal of a corporation : How has the advent of the modern corporation changed the likelihood that a firm's primary goal is to maximize profit? What other considerations have gained importance and may have replaced profit maximization as the primary goal of the corporation? C..

Improvement in technology of semiconductor chips : Each of the following will shift the AE Curve for the U.S. except: an improvement in technology of semiconductor chips that increases efficiency and profit opportunities.

Calculate the net cash settlement at june 2011 : Prepare the journal entries on June 30, 2011, to record the interest and necessary adjustments for changes in fair value. Use the extended method demonstrated in Illustration A-2.

What are the two key characteristics of public goods : What can government do to encourage the development of new technology? What are the two key characteristics of public goods? Name two public goods, and explain why they are public goods. How can the free rider problem be overcome?

Explain the concept of a positive externality : Explain how competition in markets can often provide incentives for the invention of new technology. Using the ideas of social benefit and privaate benefit, explain the concept of a positive externality. Why does new technology have positive external..

Determine the arc price elasticity of demand for tickets : The current price charged by a local movie theater is $8 per ticket. At the current ticket price, the theater typically sells 300 tickets per showing. If the theater raises ticket prices to $9, the theater will sell 270 tickets. Assuming that the dem..

Deep web assessment exercise : Deep web assessment exercise IS 301( business writing class) Using business source premier, conduct a keyword search for an article about outsourcing. Browse the result page and list some of the Subject term(s) which could be used to focus your searc..

Determine the alternative that is economically best : For the cash flows shown, use an annual worth comparison and an interest rate of 10% per year. Determine the alternative that is economically best. Determine the first cost required for each of the two alternaqtives not selected in (a) so that all al..

Adjustments for changes in fair value : Prepare the journal entries during 2012 to record interest, net cash interest settlement for the interest rate swap, and necessary adjustments for changes in fair value.

User Account

All Pages