Use economic theory to discuss reasons why the example

Question # 00647552 Posted By: neil2103 Updated on: 02/06/2018 03:57 PM Due on: 02/06/2018
Subject Economics Topic Environmental Economics Tutorials:
Question
Dot Image

Use economic theory to discuss reasons why the example in the press article is an externality. Two pages

http://www.bbc.com/news/health-42802191

https://www.cdc.gov/heartdisease/facts.htm

Economic definition of an externality: An externality is a scenario where a third party bystander is negatively or positively affected by a market transaction between a buyer and a seller. For example, suppose I buy a cigar from Cigars R Us. In this situation, I am the buyer and Cigars R Us is the seller. If I smoke the cigar in a small office where I work with several coworkers, my coworkers will be subjected to second hand smoke, which negatively affects them. This scenario is an example of a negative externality.

Dot Image
Tutorials for this Question
  1. Tutorial # 00646407 Posted By: neil2103 Posted on: 02/06/2018 03:58 PM
    Puchased By: 3
    Tutorial Preview
    The solution of Use economic theory to discuss reasons why the example...
    Attachments
    Externality_Scenarios.docx (19.45 KB)
    Recent Feedback
    Rated By Feedback Comments Rated On
    si...sa Rating Customised services and great experience 03/06/2018

Great! We have found the solution of this question!

Whatsapp Lisa