Examples of consumption activity that creates external cost.

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Answer 1

Question

Chapter 17, Problem 1SPA

To determine

Examples of consumption activity that creates external cost.

Expert Solution & Answer

Explanation of Solution

Externality is the spillover effect of an activity; it may be benefit or cost. If it is benefit, it is called positive externality. If the effect cost, it is called negative externality or external cost. Some examples of consumption that create external cost to the third party are smoking,wearing heavy perfume,and drinking. That is, smoking and drinking create health problems to people and smell of heavy perfume disturb others.

Economics Concept Introduction

External cost: External cost or negative externality is the spillover cost to the third party.

Negative consumption externality: The consumption of any good that make cost to the third party is termed as negative consumption externality.

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Answer 2

Question

Chapter 17, Problem 1SPA

To determine

Examples of consumption activity that creates external cost.

Expert Solution & Answer

Explanation of Solution

Externality is the spillover effect of an activity; it may be benefit or cost. If it is benefit, it is called positive externality. If the effect cost, it is called negative externality or external cost. Some examples of consumption that create external cost to the third party are smoking,wearing heavy perfume,and drinking. That is, smoking and drinking create health problems to people and smell of heavy perfume disturb others.

Economics Concept Introduction

External cost: External cost or negative externality is the spillover cost to the third party.

Negative consumption externality: The consumption of any good that make cost to the third party is termed as negative consumption externality.

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Answer 3

Question

Chapter 17, Problem 1SPA

To determine

Examples of consumption activity that creates external cost.

Expert Solution & Answer

Explanation of Solution

Externality is the spillover effect of an activity; it may be benefit or cost. If it is benefit, it is called positive externality. If the effect cost, it is called negative externality or external cost. Some examples of consumption that create external cost to the third party are smoking,wearing heavy perfume,and drinking. That is, smoking and drinking create health problems to people and smell of heavy perfume disturb others.

Economics Concept Introduction

External cost: External cost or negative externality is the spillover cost to the third party.

Negative consumption externality: The consumption of any good that make cost to the third party is termed as negative consumption externality.

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Answer 4

Question

Chapter 17, Problem 1SPA

To determine

Examples of consumption activity that creates external cost.

Expert Solution & Answer

Explanation of Solution

Externality is the spillover effect of an activity; it may be benefit or cost. If it is benefit, it is called positive externality. If the effect cost, it is called negative externality or external cost. Some examples of consumption that create external cost to the third party are smoking,wearing heavy perfume,and drinking. That is, smoking and drinking create health problems to people and smell of heavy perfume disturb others.

Economics Concept Introduction

External cost: External cost or negative externality is the spillover cost to the third party.

Negative consumption externality: The consumption of any good that make cost to the third party is termed as negative consumption externality.

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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 17, Problem 1SPA

To determine

Examples of consumption activity that creates external cost.

Expert Solution & Answer

Explanation of Solution

Externality is the spillover effect of an activity; it may be benefit or cost. If it is benefit, it is called positive externality. If the effect cost, it is called negative externality or external cost. Some examples of consumption that create external cost to the third party are smoking,wearing heavy perfume,and drinking. That is, smoking and drinking create health problems to people and smell of heavy perfume disturb others.

Economics Concept Introduction

External cost: External cost or negative externality is the spillover cost to the third party.

Negative consumption externality: The consumption of any good that make cost to the third party is termed as negative consumption externality.

Answer 6

Chapter 17, Problem 1SPA

To determine

Examples of consumption activity that creates external cost.

Expert Solution & Answer

Explanation of Solution

Externality is the spillover effect of an activity; it may be benefit or cost. If it is benefit, it is called positive externality. If the effect cost, it is called negative externality or external cost. Some examples of consumption that create external cost to the third party are smoking,wearing heavy perfume,and drinking. That is, smoking and drinking create health problems to people and smell of heavy perfume disturb others.

Economics Concept Introduction

External cost: External cost or negative externality is the spillover cost to the third party.

Negative consumption externality: The consumption of any good that make cost to the third party is termed as negative consumption externality.

Answer 7

Chapter 17, Problem 1SPA

To determine

Examples of consumption activity that creates external cost.

Answer 8

Expert Solution & Answer

Explanation of Solution

Externality is the spillover effect of an activity; it may be benefit or cost. If it is benefit, it is called positive externality. If the effect cost, it is called negative externality or external cost. Some examples of consumption that create external cost to the third party are smoking,wearing heavy perfume,and drinking. That is, smoking and drinking create health problems to people and smell of heavy perfume disturb others.