Explain how the positive externalities normally created by activities such as snow shovelling lead to an inefficiency from a social point of view

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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a) Explain how the positive externalities normally created by activities such as
snow shovelling lead to an inefficiency from a social point of view.

WHY SHOULD OTHER
PECPLE BENEFIT FROM
MY HARD WORK?
Figure 1
Figure 1 shows how Calvin carefully avoids creating a positive externality (think
of this as the equivalent of a factory applying a filter to eliminate any polluting
emissions). Assume that this way of snow shovelling does not create any
additional costs for Calvin (no extra effort and he has no plans to return home
any time soon).
Transcribed Image Text:WHY SHOULD OTHER PECPLE BENEFIT FROM MY HARD WORK? Figure 1 Figure 1 shows how Calvin carefully avoids creating a positive externality (think of this as the equivalent of a factory applying a filter to eliminate any polluting emissions). Assume that this way of snow shovelling does not create any additional costs for Calvin (no extra effort and he has no plans to return home any time soon).
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