This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain why an external benefit leads to an under-allocation of resources to the production of a ... (Read 176 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
on: Jun 29, 2018
Explain why an external benefit leads to an under-allocation of resources to the production of a good.
 
  What will be an ideal response?

Question 2

Which one of the following industries is best classified as an oligopoly?
 
  A) textbook publishers
  B) retailing
  C) wheat farms in the United States
  D) fast food restaurants


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

olderstudent

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 29, 2018
Answer to Question 1

An external benefit is the benefit associated with the consumption of a good that is not borne by the buyer. Rather, the benefit is borne by third parties. The buyer calculates the amount of the good to consume by comparing private benefits and costs. By ignoring the external benefit, the buyer consumes less of the good than would be the case if the buyer actually received the full benefits of consumption. Hence, society under allocates resources to the production of the good.

Answer to Question 2

A


tuffie

  • Member
  • Posts: 534
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Your chance of developing a kidney stone is 1 in 10. In recent years, approximately 3.7 million people in the United States were diagnosed with a kidney disease.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

Did you know?

The most destructive flu epidemic of all times in recorded history occurred in 1918, with approximately 20 million deaths worldwide.

Did you know?

In inpatient settings, adverse drug events account for an estimated one in three of all hospital adverse events. They affect approximately 2 million hospital stays every year, and prolong hospital stays by between one and five days.

An implantable cardiovert-defibrillator: A dual-chamber ICD device with a pulse generator is implant An implantable cardiovert-defibrillator: A dual-chamber ICD device with a pulse generator is implant
External female genitalia. External female genitalia.
Groundwater Resources Groundwater Resources
Internal and external attributions Internal and external attributions
Block Diagram of Single-stage Pressure System for Dual-Stage Pressure Production of Nitric Acid Block Diagram of Single-stage Pressure System for Dual-Stage Pressure Production of Nitric Acid
Complete the following production chart and plot the points. Complete the following production chart and plot the points.
Video: Kinetic parameters & Kinetic experiment

For a complete list of videos, visit our video library