Positive externality and negative extarnality

Assignment Help Business Economics
Reference no: EM131079698

Externalities

a) What is the difference between a positive externality and a negative extarnality?

b) Give three examples of negative externalities.

c) What divergences arise between equilibrium output and efficient output when negative externalities are present?

Reference no: EM131079698

Questions Cloud

Company manufactures components for personal decision : Cindy and Robert Castillo founded the Castillo Products Company in 2008. The company manufactures components for personal decision assistant products and for other handheld electronic products.
Assumption of the model of perfect competition : 1. An assumption of the model of perfect competition is: 2. Which of the following is true in a perfectly competitive market?
Transactions be included in GDP : Will each of the following transactions be included in GDP for the United States? Explain why or why not
Discuss what a marketer might learn from dupont situation : As stated in the brief, DuPont has introduced a host of new products over the years with varied levels of success. Discuss what a marketer might learn from DuPont's situation. Think about how innovation and new product development helped move them..
Positive externality and negative extarnality : What is the difference between a positive externality and a negative extarnality? Give three examples of negative externalities. What divergences arise between equilibrium output and efficient output when negative externalities are present?
Tobins and baumols approaches of money demand : What are the differences between Tobins and Baumols approaches of money demand.
Foundational concepts in understanding economic theory : Supply and demand are foundational concepts in understanding economic theory. Whether you are a coffee drinker or not, you have been tasked to examine the impact of supply and demand when dealing with the coffee retail industry. how were coffee retai..
Production possibility frontier : In some economies relative supply may be unresponsive to changes in prices. For example, if factors of production were completely immobile between sectors, the production possibility frontier would be right-angled, and output of the two goods woul..
A supermarket the in-store computerized inventory : ABC has a chain of twenty supermarkets. When stock items reach their re-order level in a supermarket the in-store computerized inventory system informs the stock clerk. The clerk then raises a request daily to the ABC central warehouse for repleni..

Reviews

Write a Review

Business Economics Questions & Answers

  Argue that it is indeed a nash equilibrium

Recall the second price auction game. Now suppose that there are three players, 1, 2, and 3, bidding for a single object in a second price auction. All three players value the object at 10, i.e., v1 = v2 = v3 = 10. For i = 1, 2, 3, let bi denote play..

  Rapid prototyping software costs

XYZ rapid prototyping (RP) software costs $20,000, lasts one year and will be expensed (i.e., written off in one year) . The cost of the upgrades will increase 10 % per year starting at the beginning of year two. How much can be spent now for an RP s..

  What should be the marginal cost of a monopoly firm

What should be the marginal cost of a monopoly firm selling textbooks to students in a small town and is currently maximizing profit by charging a price of $48 a book and the elasticity of demand is 3/2?

  Particular economy and period,investment was equal

Suppose that for a particular economy and period,investment was equal to 100,government expenditure was equal to 75,net taxes was fixed at 100,and consumption was given by consumption function c=25+0.8Yd where Yd is the disposable income and Y

  Discussion about what specific indices mean in relationship

Conduct an analysis of a recent article and provide your evaluation and outcome expectations in an articulate and informative paper that discusses: Identification of three to five macroeconomic indices. Definition and explanation of the indices, e.g...

  Explain the long run average cost curve

Explain the impact the law of diminishing marginal returns has on both marginal cost and average total cost - with the aid of a diagram explain the long run average cost curve and the influences upon it.

  Monopoly on a certain class of cardiac implants

A medical device company has a monopoly on a certain class of cardiac implants. Demand for the implants is given by P=28000-5Q and marginal revenue is given by MR=28000-10Q. The total fixed costs for the implants division is 50000 and the marginal co..

  What organizational factors led to the incident

Case analysis: Societe Generale (A): The Jerome Kerviel Affair Knowing how to analyze a case will help you attack virtually any business problem. A case study helps you learn by immersing you in a real-world business issues—and makes you a decision-m..

  Monetary and fiscal policy actions would be most appropriate

If the economy was experiencing a severe recession, which of the following combinations of monetary and fiscal policy actions would be most appropriate?

  Write the equation for output

The questions below are about working with the Cobb Douglas model  α= 0.3 and A= 3. write the equation for output. find the MPK and MPL in terms of K and L.

  Employment rate increased to the prerecession level

In 2013, approximately 58 percent of the adult population (245 million) was employed, the lowest employment rate in 20 years. If the employment rate increased to the prerecession level of 62 percent, How many more people would be working? By how much..

  Common kinked-demand model

Elucidate the common kinked-demand model. In the oligopolist's marginal-revenue curve, elucidate the reason for gap. In this model explain how does price rigidity in oligopoly.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd