Strayer University: Asynchronous
ECO 405: Econ Problems & Issues
May 16, 2014
There are many negative and positive externalities in the world today. An externality is the cost that is imposed on a third party whether it is a positive or negative. Obviously a positive externality most people are not going to complain about because this will have a positive effect on the third party. A negative externality on the other hand is not so good the third party is negatively affected and may not be able to do anything about but complain. We are going to explore 3 different scenarios 2 that are a positive externality and one that is a negative externality. The positive externalities we will explore are a beekeeper and the positive effect his bees will have, the second is replacing your front lawn with nice artificial turf. The negative externality we will explore is a fishery over fishing in the ocean and the impact it will have on another company.
The first positive externality we will explore is the beekeeper and his bees. Normally a beekeeper will keep bees for their honey this creates a positive result for the beekeeper. His bees will create honey that he can then sale to consumers for a profit. The positive externality that is produced from the beekeeper and the bees is the farmer. In order for bees to make honey they collect pollen from different flowers and plants which then creates a cross pollination effect. The Farmers crops will be pollinated from the bees flying from plant to plant collecting pollen. This saves the farmer from having to manually pollinate their crops. With the crops being pollinated by the bees this helps them to be healthier and produce more food.
The second positive externality we will explore is installing artificial lawn in the front yard of a house. In a normal situation a house would have grass in there front lawn in order to keep the grass growing and looking...
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