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An externality is the cost or benefit that affects a party who did not choose to incur that cost or benefit. Some negative externalities in this case could be:

  • Students who work after school and would either have to request time off from work or miss the activity.
  • Students who have extracurricular activities after school would have to choose between the two activities.
  • Parents would have to arrange to pick their children up from the activity rather than the student riding the bus home if they live in the country.
  • A student would be unable to work at a part time job on that afternoon.
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8y ago
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2w ago

A negative externality in this situation could be if the noise and activity from the students volunteering disrupts the peace and quiet of the nursing home residents, causing distress or discomfort.

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Q: If a teacher decides to have her students volunteer at a community nursing home after school which of the following would be a negative externality?
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State three possible causes of market failure?

Externality - Negative Externality And Positive Externality the positive externality is a cause of a market failure because producers do not take the benefits of externality into account to society, therefore they under-produce the good that generates it , a negative externality happens where MSC > MSB. Factor Immobility And Market Power .


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