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Category > Economics Posted 15 May 2017 My Price 5.00

Suppose that growing flowers produces both a positive externality

Suppose that growing flowers produces both a positive externality (people in the neighborhood get to view the flowers) and a negative externality (the flowers aggravate peoples’ allergies).

a. True or false, and explain your answer (using a diagram): We can say for sure that too many flowers are being produced.

b. True or false, and explain your answer (using a diagram): We can say for sure that the market price of flowers is too high.

 

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Alpha Geek
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Status NEW Posted 15 May 2017 05:05 PM My Price 5.00

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