Asked by jasmine badayos on May 17, 2024
Verified
Refer to Scenario 11-3. Do any of these goods cause an externality? If so, which one(s)? Positive or negative? Briefly explain.
Externality
An externality is a consequence of an economic activity experienced by unrelated third parties; it can be either positive (beneficial) or negative (harmful).
Exotic Fish
Fish species that are not native to a specific location, often kept in aquariums or introduced to new environments where they can sometimes become invasive.
- Recognize goods that cause externalities and differentiate between positive and negative externalities.
Verified Answer
TC
Tammy CarmonaMay 23, 2024
Final Answer :
The exotic fish in the huge aquarium result in a positive externality because many people can enjoy viewing them.
Consumption of fish in the ocean results in a negative externality because one person's consumption reduces the amount available for others.
Consumption of fish in the ocean results in a negative externality because one person's consumption reduces the amount available for others.
Learning Objectives
- Recognize goods that cause externalities and differentiate between positive and negative externalities.