Question

You are having a party and one of your guests lights up a cigar without asking....

You are having a party and one of your guests lights up a cigar without asking. Explain why this creates an externality. What are two possible actions to increase welfare of guests?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

It can be mentioned that this is a negative externality because some people might be allergic to it result of which the external cost will be paid by the person who is allergic to it by the benefit is received by the person who is smoking the cigarette and that is the reason why it is a negative externality.

Possible ways in which a negative externality in this regard can be corrected in order to increase the Welfare of guests

1) Making the area a non smoking zone or creating a smoking zone separately so that the guests will not be affected

2) taking the policies in such a way that smoking can have severe fines which will demotivate the person to light up a cigar

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
9. LED bulbs produce light of only one color. If you look at strings of lights,...
9. LED bulbs produce light of only one color. If you look at strings of lights, you’ll find that the number of bulbs in the series circuit varies with color: There are more bulbs in a string of red lights than in a string of blue lights. Explain why this is the case. How many bulbs would you expect in a string of red lights? Of blue lights? Explain your assumptions, using numbers and equations, in enough detail so that...
While at a party, you pull up a sound intensity level app on your phone (everyone...
While at a party, you pull up a sound intensity level app on your phone (everyone does stuff like that, right?), and it reads 83 dB . You look around and count 40 people talking. If you assume that each person contributes the same amount of noise, determine the sound intensity level of one of those people talking.
Suppose that you are throwing a surprise birthday party for your favorite person or animal. One...
Suppose that you are throwing a surprise birthday party for your favorite person or animal. One festive choice of decoration that you chose were spherical balloons. When you blow into the balloon, suppose the radius always increases at a rate of 0.5 cm per second. At what rate does the volume of the balloon increase when the balloon is 5 cm in radius? Hint: The volume of a sphere is V = 4 πr3
During your audit of NewClient Inc., you noted a significant increase in accounts receivable without a...
During your audit of NewClient Inc., you noted a significant increase in accounts receivable without a corresponding increase in the allowance for doubtful accounts. This could suggest that management has deliberately understated the allowance for doubtful accounts (or overstated sales/receivables), or made a mistake in the calculation. You believe that there may be another possible explanation besides deliberate fraud. Indicate two possible explanations and indicate what evidence you would obtain for each explanation to establish whether your explanation is the...
having successfully completed this course, you have been assigned to set up a LAN for your...
having successfully completed this course, you have been assigned to set up a LAN for your office A) discuss the role of importance of communication as part of this set up (2 mrks) b) identify two types of communications media indicating your preference to create the LAN . justify your preference (4mrks)
You are at a dinner party and you run into a friend from your college days...
You are at a dinner party and you run into a friend from your college days at ASU who is an attorney now. Your friend tells you that she is close to settling the biggest case of her career thus far. Her client became disabled as a result of a store slip and fall accident. It is estimated that her client will lose $175,000 annually in employment and benefits for the next 10 years as a result of the disability....
With regards to your answer to the previous question: "You decide to purchase a van to...
With regards to your answer to the previous question: "You decide to purchase a van to transport your hotel guests to and from the airport. This is a new service you are adding to your hotel because you have noticed from your STR reports that your competitors are having better occupancy percentages and slightly better ADRs. And after some research, you do have a very comparable product but your current guests have also put in their comment cards that they...
Your airplane crashes in the Pacific Ocean. You land on a desert island with one other...
Your airplane crashes in the Pacific Ocean. You land on a desert island with one other passenger. A box containing 100 little bags of peanuts also washes up on the island. The peanuts are the only thing to eat. In this “economy” with two people, one commodity, and no production, represent the possible allocations in a diagram, and explain why every allocation is Pareto efficient. Is every allocation fair? ***POST GRAPH******
After you pick up a spare, your bowling ball rolls without slipping back toward the ball...
After you pick up a spare, your bowling ball rolls without slipping back toward the ball rack with a linear speed of vi=2.62 m/s. To reach the rack, the ball rolls up a ramp that rises through a vertical distance of h=0.47m. Part A What is the linear speed of the ball when it reaches the top of the ramp? Part B If the radius of the ball were increased, would the speed found in part A increase, decrease, or...
1a) Two light bulbs are hooked up in a series to a 9 V battery. Why...
1a) Two light bulbs are hooked up in a series to a 9 V battery. Why is the voltage drop across a single light bulb not 9 V? 1b) Suppose someone hands you three resistors having three different resistances. How would you hook them up in order to make their equivalent resistance as small as possible, and thus the largest current? (Briefly explain why your arrangement produces the smallest equivalent resistance.)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT