Explore BrainMass

Explore BrainMass

    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 October 9, 2019, 11:54 pm ad1c9bdddf

    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.