Question Details

Answered) I need a reply to the post below in 150 words, An externality is the cost or benefit from production or consumption that affects others who did not


I need a reply to the post below in 150 words,


An externality is the cost or benefit from production or consumption that affects others who did not originally buy or sell the product that is being produced or consumed (McConnell, Brue, & Flynn, 2015). An example of a positive externality would be immunizations like the flu shot. The flu shot helps prevent the spread of the flu to the general public. An example of a negative externality is a power plant that burns coal to generate electricity. The more demand from customerâs causes the plant to burn more which increases the level of pollutants. 

Positive externalities could lead to inefficiency in the market economy when there is a difference between private and social gains. When there is a shortage of the flu shot leads to inefficiency in the market. The power plant that burns coal to generate electricity does not consider the indirect cost to those harmed by the pollutants which leads to inefficiencies in the market economy. When the market outcome is underproduction of goods or services that deals with positive externalities and when the market outcome is overproduction of goods or service that deals with negative externalities. 

One way to help reduce market distortions of externalities is to have regulations. For example, the EPA (Environmental Protection Agency) has regulations around emissions for coal power plants like the Coal Combustion Residuals regulation (EPA, 2017). Another way to help reduce market distortions of externalities is to offer tax breaks.    

Government policies usually focus on the larger social impacts like pollution. By focusing on the bigger issues, this will help more individuals and help reduce inefficiency. 

References:

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $18

Solution~000200091906.zip (25.37 KB)

Buy this answer for only: $18

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now