Explain How Positive Externalities Cause a Wedge Between Private Marginal

question 34

Essay

Explain how positive externalities cause a wedge between private marginal costs and social marginal costs.Give an example of a positive externality and explain why it is,in fact,a positive externality.Draw a supply/demand diagram and add a social marginal cost curve that represents the presence of the positive externality.Explain the relationship between the equilibrium quantity and that which is socially efficient.

Understand the ethics and consequences of communication in dispute resolution.

Understand the basic concepts and tools of financial statement analysis.

Comprehend the computation methods for inventory days and turnover.

Grasp the concept and computation of percentage changes in financial data.

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.

Equilibrium Price

A price point where the supply of goods meets the demand for those goods in the market.

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a specific price over a certain period of time.

Usury Laws

Regulations governing the maximum interest rate that can be charged on loans, intended to protect borrowers from excessively high rates.