You build a chicken coop in your suburban backyard. You have several hens and one rooster. The rooster wakes up your neighbor each moming at 5.00 am.MacmillanLeaYour chicken coop) creates a negative externality if the neighbor wants to sleep longer and a positive externality if the neighbor is happy to be awaken early each day. creates a positive externality if the neighbor wants to sleep longer but accepts free eggs in exchange for the inconvenience. creates a negative externality if your chickens do not lay eggs. creates a positive externality if you sell your chickens' eggs at the local farmers' market.b. You get sick and go to a doctor. The doctor diagnoses you with a bacterial infection and prescribes an antibiotic.Your visit to the doctor produces a negative externality if you were supposed to be home studying for your classes. produces a positive externality if your medical insurance pays for the visit and a negative externality if you have to pay out of pocket. produces a positive externality if it prevents other people from getting sick and a negative externality if the bacterial infection becomes resistant to antibiotics.produces a negative externality if the doctor was hoping to leave early that day and a positive externality if the doctor was hoping to boost her income.Q Search10:17 P10/6/20:F9End
Added by Rebecca S.
Step 1
Let's think step by step. Show more…
Show all steps
Your feedback will help us improve your experience
Prashant Bana and 91 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
Identify the following situations as an example of a negative or a positive externality: a. You are a birder (bird watcher), and your neighbor has put up several birdhouses in the yard as well as planting trees and flowers that attract birds. b. Your neighbor paints his house a hideous color. c. Investments in private education raise your country's standard of living. d. Trash dumped upstream flows downstream right past your home. e. Your roommate is a smoker, but you are a nonsmoker.
Prashant B.
Majid B.
Crystal W.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD