What is externality and examples of positive and negative externality.

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Answer 1

Question

Chapter 5, Problem 5.1.1RQ

To determine

What is externality and examples of positive and negative externality.

Expert Solution & Answer

Explanation of Solution

An externality can be beneficial or cost which means it may be positive or negative externality. The impact of one’s action on the well-being of another is termed as an externality. The classic example of an externality is pollution. The production of goods emits pollutants in the environment which leads to different kinds of pollution like air pollution and water pollution. and so forth. This causes health problems for the people who are living near the production area. The example of a positive externality is restoration of historical buildings, facts which are leading to the formation of new research and education experiments and so on.

Economics Concept Introduction

Concept Introduction:

Externality: Externality is the impact of one person's actions on the well-being of a bystander. The externality is two types, positive and negative.

Positive externality: If the impact of one person’s action on the bystander is beneficial, it is known as a positive externality

Negative externality: If the impact of one person’s action on the bystander is adverse, it is known as a negative externality.

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Students have asked these similar questions

At the 8:10 café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early classes arrive early anyway (that is she cannot price discriminate). Students with early classes Students without early classes Coffee 70 60 Banana 50 100 The MC of coffee is 10. The MC of a banana is 40. Is bundling more profitable than selling separately? HINT: if you sell the bundle, can you make more by offering coffee separately? If so, what price should be charged for the bundle? (Show calculations)

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Use the following demand data: Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40%

Your marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000. Group Value Frequency Baby boomers $5 20% Generation X $4 10% Generation Y $3 10% `Tweeners $2 10% Seniors $2 10% Others $0 40% ur marketing department has identified the following customer demographics in the following table. Construct a demand curve and determine the profit maximizing price as well as the expected profit if MC=$1. The number of customers in the target population is 10,000.

Answer 2

Question

Chapter 5, Problem 5.1.1RQ

To determine

What is externality and examples of positive and negative externality.

Expert Solution & Answer

Explanation of Solution

An externality can be beneficial or cost which means it may be positive or negative externality. The impact of one’s action on the well-being of another is termed as an externality. The classic example of an externality is pollution. The production of goods emits pollutants in the environment which leads to different kinds of pollution like air pollution and water pollution. and so forth. This causes health problems for the people who are living near the production area. The example of a positive externality is restoration of historical buildings, facts which are leading to the formation of new research and education experiments and so on.

Economics Concept Introduction

Concept Introduction:

Externality: Externality is the impact of one person's actions on the well-being of a bystander. The externality is two types, positive and negative.

Positive externality: If the impact of one person’s action on the bystander is beneficial, it is known as a positive externality

Negative externality: If the impact of one person’s action on the bystander is adverse, it is known as a negative externality.

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Answer 3

Question

Chapter 5, Problem 5.1.1RQ

To determine

What is externality and examples of positive and negative externality.

Expert Solution & Answer

Explanation of Solution

An externality can be beneficial or cost which means it may be positive or negative externality. The impact of one’s action on the well-being of another is termed as an externality. The classic example of an externality is pollution. The production of goods emits pollutants in the environment which leads to different kinds of pollution like air pollution and water pollution. and so forth. This causes health problems for the people who are living near the production area. The example of a positive externality is restoration of historical buildings, facts which are leading to the formation of new research and education experiments and so on.

Economics Concept Introduction

Concept Introduction:

Externality: Externality is the impact of one person's actions on the well-being of a bystander. The externality is two types, positive and negative.

Positive externality: If the impact of one person’s action on the bystander is beneficial, it is known as a positive externality

Negative externality: If the impact of one person’s action on the bystander is adverse, it is known as a negative externality.

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Answer 4

Question

Chapter 5, Problem 5.1.1RQ

To determine

What is externality and examples of positive and negative externality.

Expert Solution & Answer

Explanation of Solution

An externality can be beneficial or cost which means it may be positive or negative externality. The impact of one’s action on the well-being of another is termed as an externality. The classic example of an externality is pollution. The production of goods emits pollutants in the environment which leads to different kinds of pollution like air pollution and water pollution. and so forth. This causes health problems for the people who are living near the production area. The example of a positive externality is restoration of historical buildings, facts which are leading to the formation of new research and education experiments and so on.

Economics Concept Introduction

Concept Introduction:

Externality: Externality is the impact of one person's actions on the well-being of a bystander. The externality is two types, positive and negative.

Positive externality: If the impact of one person’s action on the bystander is beneficial, it is known as a positive externality

Negative externality: If the impact of one person’s action on the bystander is adverse, it is known as a negative 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 5, Problem 5.1.1RQ

To determine

What is externality and examples of positive and negative externality.

Expert Solution & Answer

Explanation of Solution

An externality can be beneficial or cost which means it may be positive or negative externality. The impact of one’s action on the well-being of another is termed as an externality. The classic example of an externality is pollution. The production of goods emits pollutants in the environment which leads to different kinds of pollution like air pollution and water pollution. and so forth. This causes health problems for the people who are living near the production area. The example of a positive externality is restoration of historical buildings, facts which are leading to the formation of new research and education experiments and so on.

Economics Concept Introduction

Concept Introduction:

Externality: Externality is the impact of one person's actions on the well-being of a bystander. The externality is two types, positive and negative.

Positive externality: If the impact of one person’s action on the bystander is beneficial, it is known as a positive externality

Negative externality: If the impact of one person’s action on the bystander is adverse, it is known as a negative externality.

Answer 6

Chapter 5, Problem 5.1.1RQ

To determine

What is externality and examples of positive and negative externality.

Expert Solution & Answer

Explanation of Solution

An externality can be beneficial or cost which means it may be positive or negative externality. The impact of one’s action on the well-being of another is termed as an externality. The classic example of an externality is pollution. The production of goods emits pollutants in the environment which leads to different kinds of pollution like air pollution and water pollution. and so forth. This causes health problems for the people who are living near the production area. The example of a positive externality is restoration of historical buildings, facts which are leading to the formation of new research and education experiments and so on.

Economics Concept Introduction

Concept Introduction:

Externality: Externality is the impact of one person's actions on the well-being of a bystander. The externality is two types, positive and negative.

Positive externality: If the impact of one person’s action on the bystander is beneficial, it is known as a positive externality

Negative externality: If the impact of one person’s action on the bystander is adverse, it is known as a negative externality.

Answer 7

Chapter 5, Problem 5.1.1RQ

To determine

What is externality and examples of positive and negative externality.

Answer 8

Expert Solution & Answer

Explanation of Solution

An externality can be beneficial or cost which means it may be positive or negative externality. The impact of one’s action on the well-being of another is termed as an externality. The classic example of an externality is pollution. The production of goods emits pollutants in the environment which leads to different kinds of pollution like air pollution and water pollution. and so forth. This causes health problems for the people who are living near the production area. The example of a positive externality is restoration of historical buildings, facts which are leading to the formation of new research and education experiments and so on.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Concept Introduction:

Externality: Externality is the impact of one person's actions on the well-being of a bystander. The externality is two types, positive and negative.

Positive externality: If the impact of one person’s action on the bystander is beneficial, it is known as a positive externality

Negative externality: If the impact of one person’s action on the bystander is adverse, it is known as a negative externality.