Externality is a situation where economic activities leads to market failure because price of products does not reflect the cost and benefits of products and services. Equilibrium means balancing off between buyer and seller. Therefore negative externality is a situation producer does not not bear all cost thus excess production and a positive externality in equilibrium is where buyer does not get all benefits of the goods resulting in decrease in production.
PETERMAN answered the question on May 30, 2019 at 14:25
- Describe the use of Edgeworth box in welfare economy(Solved)
Describe the use of Edgeworth box in welfare economy.
Date posted: December 15, 2018. Answers (1)
- What is marginal rate of substitution?(Solved)
What is marginal rate of substitution?
Date posted: December 13, 2018. Answers (1)
- What is a monopoly?(Solved)
What is a monopoly?
Date posted: December 11, 2018. Answers (1)
- Outline the contributions of Keynes to income output and employment(Solved)
Outline the contributions of Keynes to income output and employment.
Date posted: December 9, 2018. Answers (1)
- Discuss the free market economy and state the advantages and disadvantages of the economic system(Solved)
Discuss the free market economy and state the advantages and disadvantages of the economic system
Date posted: December 8, 2018. Answers (1)
- Discuss the traditional economy and state the advantages and disadvantages of the economic system(Solved)
Discuss the traditional economy and state the advantages and disadvantages of the economic system
Date posted: December 8, 2018. Answers (1)
- List the 4 main types of Economic systems(Solved)
List the 4 main types of Economic systems
Date posted: December 8, 2018. Answers (1)
- Name the functions of an Economic system(Solved)
Name the functions of an Economic system
Date posted: December 8, 2018. Answers (1)
- Explain the characteristics of Economic system(Solved)
Explain the characteristics of Economic system
Date posted: December 8, 2018. Answers (1)
- Name 5 characteristics of Economic system(Solved)
Name 5 characteristics of Economic system
Date posted: December 8, 2018. Answers (1)
- Define the term economic system(Solved)
Define the term economic system.
Date posted: December 8, 2018. Answers (1)
- Explain the two branches of Economics and give the difference between the two(Solved)
Explain the two branches of Economics and give the difference between the two
Date posted: December 8, 2018. Answers (1)
- Importance of studying Economics(Solved)
Importance of studying Economics
Date posted: December 8, 2018. Answers (1)
- Discuss the scope of Economics(Solved)
Discuss the scope of Economics
Date posted: December 8, 2018. Answers (1)
- Define the term economics(Solved)
Define the term economics.
Date posted: December 8, 2018. Answers (1)
- Conditions to consider in selecting a project
(Solved)
Conditions to consider in selecting a project
Date posted: November 24, 2018. Answers (1)
- What is the importance of the market planning?(Solved)
Importance of market planning
Date posted: November 18, 2018. Answers (1)
- Describe market planning process (Solved)
Describe market planning process
Date posted: November 18, 2018. Answers (1)
- Explain three functions of budgetary policies(Solved)
Explain three functions of budgetary policies.
Date posted: November 18, 2018. Answers (1)
- Discuss the various pricing strategies that can be used by stakeholders to promote domestic tourism(Solved)
Discuss the various pricing strategies that can be used by stakeholders to promote domestic tourism.
Date posted: November 16, 2018. Answers (1)