2.3 Use the negative externality and positive externality graphs to explain the impact this business have to the society. (10) ​

Answers

Answer 1

Negative Externality:The business ambiguous create dirtiness as a product, that imposes costs on association such as energy issues and material shame.

What is the positive externality?

The negative external part of something diagram shows that the slight public cost (MSC) surpasses the private cost (PC) as it involves the supplementary costs to people. This leads to an flood level of the business's gain, beginning an wasteful distribution of possessions.

Positive Externality:The business supports task preparation programs to the local society, resulting in a more skillful trained workers and raised human capital. The helpful external part of something diagram shows that the borderline public benefit (MSB) surpasses the private benefit (PB) as it involves the supplementary benefits to organization.

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