Question

Carmen listens to opera music every evening when she gets home from work. Carmen loves listening to opera, but her neighbor Paul, who can also hear the music, hates it. If Paul is the only person besides Carmen who can hear the music, then Carmen's music generates:

Answer 1

Carmen's love for opera music creates a negative externality for her neighbor Paul, as he experiences displeasure from hearing the music without his consent.

Step-by-step explanation:

When Carmen listens to opera music every evening, she derives pleasure from it, which is a positive experience for her. However, her neighbor Paul, who dislikes the music and can also hear it, experiences a negative effect. This situation is an example of an externality, specifically a negative externality for Paul because it is an unwanted consequence. Externality refers to a cost or benefit incurred or received by a third party who has no control over the creating of that cost or benefit. In this case, Paul is subjected to the opera music without his consent, thereby experiencing a cost (displeasure) due to Carmen's action of playing music.