Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other. The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Question

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Answer 1

Question

Chapter 16, Problem 1BCQ

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Expert Solution & Answer

Explanation of Solution

The term externality is used when any individual or firm impose costly or deliver cost to the other individual or firm, and these individuals or firm does not have any economic incentive to take these type of costs or benefits into account.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost. For example, if a person is driving a car, then the closed window of the car can be treated as a positive externality for the person sitting inside the car because it is preventing him from pollution, whereas it is a negative externality for the other person who is on the road because that car is emitting pollution to them.

A considerable role is played by social media websites by externalities. Negative externality for social media can be for example, if the main aim of a social media website is to earn profits rather than providing benefits to customers, then it can done so by posting more and more advertisements due to this, the website might not open as fast as expected by the customers, this can cause frustration in users.

On the other hand, for example, if social media do not just focus on earning revenue, whereas it also focuses on the helpfulness to the users, then in this case, social media focuses on the goodwill of the website. Therefore, this gives rise to the positive externalities.

Conclusion:

Thus, social media can create positive as well as negative externalities.

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The figure below shows the hypothetical domestic supply and demand for baseball caps in the country of Spain. Domestic Supply and Demand for Baseball Caps Price (€ per cap) 10 9 8 7 6 5 4 3 2 1 0 Spain Dd 10 20 30 40 50 60 70 80 90 100 Baseball caps (thousands per month) Suppose that the world price of baseball caps is €2 and there are no import restrictions on this product. Assume that Spanish consumers are indifferent between domestic and imported baseball caps. Instructions: Enter your answers as whole numbers. a. What quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand b. What quantity of baseball caps will be imported? thousand Now suppose a tariff of €1 is levied against each imported baseball cap. c. After the tariff is implemented, what quantity of baseball caps will domestic suppliers supply to domestic consumers? thousand d. After the tariff is implemented, what quantity of baseball caps will be imported? thousand

May I please have the solutions for the following assignment? as 2025

Answer 2

Question

Chapter 16, Problem 1BCQ

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Expert Solution & Answer

Explanation of Solution

The term externality is used when any individual or firm impose costly or deliver cost to the other individual or firm, and these individuals or firm does not have any economic incentive to take these type of costs or benefits into account.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost. For example, if a person is driving a car, then the closed window of the car can be treated as a positive externality for the person sitting inside the car because it is preventing him from pollution, whereas it is a negative externality for the other person who is on the road because that car is emitting pollution to them.

A considerable role is played by social media websites by externalities. Negative externality for social media can be for example, if the main aim of a social media website is to earn profits rather than providing benefits to customers, then it can done so by posting more and more advertisements due to this, the website might not open as fast as expected by the customers, this can cause frustration in users.

On the other hand, for example, if social media do not just focus on earning revenue, whereas it also focuses on the helpfulness to the users, then in this case, social media focuses on the goodwill of the website. Therefore, this gives rise to the positive externalities.

Conclusion:

Thus, social media can create positive as well as negative externalities.

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Answer 3

Question

Chapter 16, Problem 1BCQ

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Expert Solution & Answer

Explanation of Solution

The term externality is used when any individual or firm impose costly or deliver cost to the other individual or firm, and these individuals or firm does not have any economic incentive to take these type of costs or benefits into account.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost. For example, if a person is driving a car, then the closed window of the car can be treated as a positive externality for the person sitting inside the car because it is preventing him from pollution, whereas it is a negative externality for the other person who is on the road because that car is emitting pollution to them.

A considerable role is played by social media websites by externalities. Negative externality for social media can be for example, if the main aim of a social media website is to earn profits rather than providing benefits to customers, then it can done so by posting more and more advertisements due to this, the website might not open as fast as expected by the customers, this can cause frustration in users.

On the other hand, for example, if social media do not just focus on earning revenue, whereas it also focuses on the helpfulness to the users, then in this case, social media focuses on the goodwill of the website. Therefore, this gives rise to the positive externalities.

Conclusion:

Thus, social media can create positive as well as negative externalities.

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Answer 4

Question

Chapter 16, Problem 1BCQ

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Expert Solution & Answer

Explanation of Solution

The term externality is used when any individual or firm impose costly or deliver cost to the other individual or firm, and these individuals or firm does not have any economic incentive to take these type of costs or benefits into account.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost. For example, if a person is driving a car, then the closed window of the car can be treated as a positive externality for the person sitting inside the car because it is preventing him from pollution, whereas it is a negative externality for the other person who is on the road because that car is emitting pollution to them.

A considerable role is played by social media websites by externalities. Negative externality for social media can be for example, if the main aim of a social media website is to earn profits rather than providing benefits to customers, then it can done so by posting more and more advertisements due to this, the website might not open as fast as expected by the customers, this can cause frustration in users.

On the other hand, for example, if social media do not just focus on earning revenue, whereas it also focuses on the helpfulness to the users, then in this case, social media focuses on the goodwill of the website. Therefore, this gives rise to the positive externalities.

Conclusion:

Thus, social media can create positive as well as negative externalities.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 1BCQ

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Expert Solution & Answer

Explanation of Solution

The term externality is used when any individual or firm impose costly or deliver cost to the other individual or firm, and these individuals or firm does not have any economic incentive to take these type of costs or benefits into account.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost. For example, if a person is driving a car, then the closed window of the car can be treated as a positive externality for the person sitting inside the car because it is preventing him from pollution, whereas it is a negative externality for the other person who is on the road because that car is emitting pollution to them.

A considerable role is played by social media websites by externalities. Negative externality for social media can be for example, if the main aim of a social media website is to earn profits rather than providing benefits to customers, then it can done so by posting more and more advertisements due to this, the website might not open as fast as expected by the customers, this can cause frustration in users.

On the other hand, for example, if social media do not just focus on earning revenue, whereas it also focuses on the helpfulness to the users, then in this case, social media focuses on the goodwill of the website. Therefore, this gives rise to the positive externalities.

Conclusion:

Thus, social media can create positive as well as negative externalities.

Answer 6

Chapter 16, Problem 1BCQ

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Expert Solution & Answer

Explanation of Solution

The term externality is used when any individual or firm impose costly or deliver cost to the other individual or firm, and these individuals or firm does not have any economic incentive to take these type of costs or benefits into account.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost. For example, if a person is driving a car, then the closed window of the car can be treated as a positive externality for the person sitting inside the car because it is preventing him from pollution, whereas it is a negative externality for the other person who is on the road because that car is emitting pollution to them.

A considerable role is played by social media websites by externalities. Negative externality for social media can be for example, if the main aim of a social media website is to earn profits rather than providing benefits to customers, then it can done so by posting more and more advertisements due to this, the website might not open as fast as expected by the customers, this can cause frustration in users.

On the other hand, for example, if social media do not just focus on earning revenue, whereas it also focuses on the helpfulness to the users, then in this case, social media focuses on the goodwill of the website. Therefore, this gives rise to the positive externalities.

Conclusion:

Thus, social media can create positive as well as negative externalities.

Answer 7

Chapter 16, Problem 1BCQ

To determine

Concept Introduction:

Externalities: Any external factor which causes either a benefit or loss to the producers and these benefits or losses do not get reflected in the market price of a good or service and not even reflected in the accounts of a producer, then this is known as externalities. It may be a loss for one party and gain for the other.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost

Answer 8

Expert Solution & Answer

Explanation of Solution

The term externality is used when any individual or firm impose costly or deliver cost to the other individual or firm, and these individuals or firm does not have any economic incentive to take these type of costs or benefits into account.

The positive externality can be said as an external benefit, whereas the negative externality can be said as an external cost. For example, if a person is driving a car, then the closed window of the car can be treated as a positive externality for the person sitting inside the car because it is preventing him from pollution, whereas it is a negative externality for the other person who is on the road because that car is emitting pollution to them.

A considerable role is played by social media websites by externalities. Negative externality for social media can be for example, if the main aim of a social media website is to earn profits rather than providing benefits to customers, then it can done so by posting more and more advertisements due to this, the website might not open as fast as expected by the customers, this can cause frustration in users.

On the other hand, for example, if social media do not just focus on earning revenue, whereas it also focuses on the helpfulness to the users, then in this case, social media focuses on the goodwill of the website. Therefore, this gives rise to the positive externalities.

Conclusion:

Thus, social media can create positive as well as negative externalities.