externalities examples

Is A Subsidy A Positive Externality?

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Is A Subsidy A Positive Externality? Subsidies involve the government paying part of the cost to the firm; this reduces the price of the good and should encourage more consumption. A subsidy shifts the supply curve to the right and can be justified for goods which offer benefits to the rest of society. Is subsidy

Is Pollution A Positive Externality?

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Is Pollution A Positive Externality? Pollution is a negative externality. Economists illustrate the social costs of production with a demand and supply diagram. The social costs include the private costs of production incurred by the company and the external costs of pollution that are passed on to society. Why do many harmful negative externalities and