Scenario 10-4 the Demand Curve for Fire Extinguishers Slopes Downward and the and the Supply

question 40

Essay

Scenario 10-4
The demand curve for fire extinguishers slopes downward and the supply curve for fire extinguishers slopes upward. The production of the 500^th fire extinguisher entails the following:
• a private cost of $10;
• an external cost of $0;
• a private value of $9;
• an external benefit of $3.
-Refer to Scenario 10-4. Does the production of fire extinguishers convey a positive externality, a negative externality, or neither?

---

Definitions:

John Rawls

A philosopher known for developing the theory of justice as fairness, which considers how societal resources can be distributed equitably.

Income Distribution

The way in which total income is shared amongst the population.

Liberalism

A school of thought advocating for personal liberty, the consent of those under governance, and fairness within the legal system.

Government Property

Assets owned by the state or government, including buildings, land, and resources.