Question

What are two positive and negative externalities for restaurants?

Answer 1

An activity with an external benifits is said to have a Positive Externality. And an activity with an external cost is said to have a Negative Externality.

Negative Externality means the cost of food which are very high in restaurants like the cost of diet related diseases such as obesity. While these costs are Externality society pays for thme by health insurance premium, personal expenses for health and wellbeing.

Positive Externality like provides employment to third parties by delivery services, and preserves the countryside.