ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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There are two identified externalities involved with pig farming. What are they?
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‘Externality’ is a cost or benefit that a person or a community receives but they have no control over it. ‘Externality’ can be of two types ‘positive externality’ and ‘negative externality’.
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- BND11.1 Why Do Externalities Cause Deadweight Loss?arrow_forwardWhich of the following is an exampleof a negative externality? A. Abeekeeper selling honey at a farmers'market B. A factory emittingpollutants into the air C. A restaurantoffering a discount to senior citizensD. A farmer using organic farmingmethods.arrow_forwardWhat happens in the market for a good that pollutes the air when it is manufactured if government decides to tax its production? Will this reduce the amount of air pollution?arrow_forward
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