Exploring Economics
8th Edition
ISBN: 9781544336329
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 8, Problem 7P
To determine
The reason that TV broadcasts have characteristics of public good and the characteristics of cable services like HBO.
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- Differentiate between a public good and common resources.arrow_forwardWhat is traditional media and new media? What are their differences?arrow_forwardWhat happens in the market for a good that pollutes the air when it is manufactured if government decides to tax consumers when the product is purchased? Will this reduce the amount of air pollution?arrow_forward
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- What is an externality? How do they affect market efficiency? If an externality is present, where is the socially optimal point of production? Where will the market produce if there is no government intervention? How do we get from the private market equilibrium to the socially optimal one?arrow_forwardExternality is a problem that create market failure. How the externalities can be internalized to improve market efficiency?arrow_forwardGive an example of a negative externality that you have witnessed or are personally aware of. Who is affected by this? What can be done to improve the situation?arrow_forward
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