6 Externalities 12 Points In The Lecture Notes We Covered Both Positive And Negative Externalities A Why Do Exter 1 (27.25 KiB) Viewed 28 times
6 Externalities 12 Points In The Lecture Notes We Covered Both Positive And Negative Externalities A Why Do Exter 2 (50.58 KiB) Viewed 28 times
6. Externalities (12 points). In the lecture notes, we covered both positive and negative externalities. a. Why do externalities arise? b. In the case of negative externalities, we distinguished between the three types of costs. What are these three costs and why is the cost to society (you still need to provide its specific name) the greatest of the three? c. Why is the negative externality a market failure?
EQUATIONS Marginal Utility (MU) = Change in Total Utility (TU) / Change in Output Marginal Product (MP) = Change in Total Product (TP) / Change in Labor Average Product (AP) = Total Product (TP) / Labor Total Cost (TC) = Total Fixed Cost (TFC) + Total Variable Cost (TVC) Average Fixed Cost (AFC) = Total Fixed Cost (TFC)/Total Product (TP) Average Variable Cost (AVC)= Total Variable Cost (TVC)/Total Product (TP) Average Total Cost (ATC) = Total Cost (TC)/ Total Product (TP) = Average Fixed Cost (AFC) + Average Variable Cost (AVC) Marginal Cost (MC)= Change in Total Cost (TC) / Change in Total Product (TP) = Change in Total Variable Cost (TVC)/ Change in Total Product (TP)
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