Read each of the articles in the Snodgrass Hollow Times. Identify 2 negative externalities, and 2 positive externalities that exist in the community because of the activity in the article. For each, provide a 2-3 sentence explanation as to why each is a positive or negative externality. Remember that an externality is a consequence experienced by a third party not involved in an economic transaction.

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Lilah

13 June, 08:36

Read each of the articles in the Snodgrass Hollow Times. Identify 2 negative externalities, and 2 positive externalities that exist in the community because of the activity in the article. For each, provide a 2-3 sentence explanation as to why each is a positive or negative externality. Remember that an externality is a consequence experienced by a third party not involved in an economic transaction.

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Pamela Ballard · Answer 1

A negative externality increases the social costs of economic activity, so a diagram that took it into account would have a supply/cost curve farther to the left, reflecting a higher social "price" at every quantity.