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 167 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
Gracias!

mcabuhat

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Amoebae are the simplest type of protozoans, and are characterized by a feeding and dividing trophozoite stage that moves by temporary extensions called pseudopodia or false feet.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

External and cross-sectional view of an infarct caused by a myocardial infarction. External and cross-sectional view of an infarct caused by a myocardial infarction.
Groundwater Resources Groundwater Resources
Nasal cartilage and external structures. Nasal cartilage and external structures.
Thyroid hormone production—Relationship between pituitary and thyroid glands. Thyroid hormone ... Thyroid hormone production—Relationship between pituitary and thyroid glands. Thyroid hormone ...
Products like Beano contain enzymes that help reduce the production of gas in the large intestine Products like Beano contain enzymes that help reduce the production of gas in the large intestine
Metallic Resources Metallic Resources
Video: A timeline of the teeth (Explained - No Audio)

For a complete list of videos, visit our video library