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[Econ] Hi, here is a question about ”externalities ”!!
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I have no idea what the externalities are talking about...and can't really have concept of how to answer my homework question..I would like to ask someone that could help me...Thank you so much.Here is my homework question:Demonstrate your understanding of the concept by explaining how... 顯示更多 I have no idea what the externalities are talking about... and can't really have concept of how to answer my homework question.. I would like to ask someone that could help me... Thank you so much. Here is my homework question: Demonstrate your understanding of the concept by explaining how externalities are unintended consequences.
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其他解答:
[Econ] Hi, here is a question about ”externalities ”!!
發問:
I have no idea what the externalities are talking about...and can't really have concept of how to answer my homework question..I would like to ask someone that could help me...Thank you so much.Here is my homework question:Demonstrate your understanding of the concept by explaining how... 顯示更多 I have no idea what the externalities are talking about... and can't really have concept of how to answer my homework question.. I would like to ask someone that could help me... Thank you so much. Here is my homework question: Demonstrate your understanding of the concept by explaining how externalities are unintended consequences.
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Externalities occur when one person's actions affect another person's well-being and the relevant costs and benefits are not reflected in market prices.A negative externality arises when one person's actions harm another. When polluting, factory owners may not consider the costs that pollution imposes on others. However, they must continue to run the business in order to produce the goods necessarily to the public.Therefore, government intervention is necessary by imposing laws or by setting legislatives on the factory owners so that they must be paid higher water and sewage charges. Lighthouses are one of the most famous examples that economists give of public goods that cannot be privately provided. Economists have argued that if private lighthouse owners attempted to charge ship-owners for lighthouse services, a free-rider problem would result.Lighthouse owners realized that they could not charge shipowners for their services. Therefore, externalities are unintended consequences due to free rider problem and government involvement is necessary to provide lighthouse (public good) in order to reduce casualties in the sea.其他解答:
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