Externalities take place when consumers/manufacturers activities have an unintentional or indirect impact on other consumers/manufacturers without affecting prices. According to Sankar, externalities may cause positive and negative effects (6). In other words, if the consumer or a group grants certain benefits to other economic agents, the externality is positive; if any activity is disadvantageous to other groups or individuals, then the externality is negative (7). According to Stiglitz (216), “Externalities arise whenever an individual or firm undertakes an action that has an effect on other individual or firm”. The externalities phenomenon tends to have a spillover effect in the ...
Dead Weight College Essays Samples For Students
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The junior staff all knew about it. I was the only one who had not heard about what the human resource was planning to do. The IT department would have to suffer a big blow in terms of getting new employees. The human resource department has recommended that a few heads should roll in light if the recent drop in performance. That was not the only reason as I came to find out. The company had to tighten its budget to fit in other projects that seem to be more lucrative to the organisation. This did not sit well with me ...
Question 1a
This is the benefit which a supplier gets upon selling a commodity. It is calculated as the difference in the amount that a supplier can accept to sell his commodity and the amount which the commodity is actually sold in the in the market.
Question 1 b
The increase in cost of commodity to sellers is seen leads to increase in price of a commodity in the market. If it is not possible to increase the price of a commodity supply curve shifts to the left indicating a decrease in quantity supplied (Depken,26).
Question 1 c
Producer surplus increases as price of a commodity increases.
Question 2a
Company D ...
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