Explore BrainMass
Share

Externalities, Positive and Negative

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

What is the definition of an externality? What is the distinction between positive externalities (positive spillover costs) and negative externalities (negative spillover costs)? Why do externalities exist?

© BrainMass Inc. brainmass.com March 21, 2019, 6:53 pm ad1c9bdddf
https://brainmass.com/economics/output-and-costs/externalities-positive-negative-271685

Solution Preview

Externalities are costs that are not captured in market prices. Postitive externalities are those that would make a price lower than it should be. For example, the benefits of a highly education population make society better for everyone, ...

Solution Summary

A discussion on types of externalities and the reasons for their existences are examined.

$2.19