A student using an e-cigarette in a library emits clouds of vapor that disrupt others working close to them. is this market power or externality

Describe a situation where you experienced a positive or negative externality or free-riding by you or someone else.  Why are these situations problematic?

None

A positive externality arises when a third party, outside the market transaction, fails to allocate resources efficiently Pays less for the good or service benefits from a market transaction pays a pollution tax to balance social costs

Macmillan Learning Incorrect An externality is defined as: the effect of an activity undertaken outside a building rather than inside a building. an effect of market activity that impacts the opposite side of the market from the side whose decision caused the effect. a side effect of an activity that affects bystanders whose interests are not taken into account. the impact of an activity on buyers and sellers in the market where the activity takes place.

. Draw a graph for a market where a negative externality occurs. Show the market supply curve and the market outcomes for price and quantity.  Show the supply curve that takes all the costs in to account.  Show the price and quantity that would be best for society when we take all the costs of production and consumption in to account.

Use the table below to answer the questions: Quantity Supplied (Private Supplied (Social Cost only) 12,000 14,000 17,000 20,000 24,000 Quantity Quantity Demanded Price 19,000 14,000 9000 5000 1000 $50 $55 $60 $65 $70 Cost) 6000 7500 9000 11,000 14,000 (a) Find the equilibrium price, assuming sellers ignore negative externalities. (b) Find the equilibrium quantity, assuming sellers ignore negative externalities. (c) Find the optimal price, including external costs. (d) Find the optimal quantity, including external costs.

I chose option D and got this wrong. I thought that when you had a positive externality The demand curve move to the right. Wouldn’t this mean that the level of output and the price would be greater than the free market ones? can you explain how my answer is wrong? What is correct?

The town has a kayak rental and visitors use the lake for recreation. The town also has a chemical lab that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the chemical lab's waste decreases the kayak rental's economic profit.    Suppose that the chemical lab could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the kayak rental would no longer be affected. If the chemical lab uses the recycling method, then the chemical lab's economic profit is $900 per week, and the kayak rental's economic profit is $2,600 per week. If the chemical lab does not use the recycling method, then the chemical lab's economic profit is $1,600 per week, and the kayak rental's economic profit is $1,500 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the chemical lab's…

In a market with a negative externality, like houses being painted with lead paint, the quantity produced in the market in a competitive will be than the quantity that maximizes total surplus. higher lower the same as