Question

Read each of the articles in the Snodgrass Hollow Times. Identify 2 negative externalities, and 2 positive externalities that exist in the community because of the activity in the article. For each, provide a 2-3 sentence explanation as to why each is a positive or negative externality. Remember that an externality is a consequence experienced by a third party not involved in an economic transaction.

Answer 1

Step-by-step explanation:

A negative externality increases the social costs of economic activity, so a diagram that took it into account would have a supply/cost curve farther to the left, reflecting a higher social "price" at every quantity.