Answer to Question #295086 in Economics of Enterprise for Moncy

Question

A neighbor barking dog can be both a positive externality and a negative externality .under what circumstances would a dogs bark be positive externality? Under what circumstance would a dog bark be an negative externality

Answer 1

It would be a positive externality when it barks and alerts people of an intrusion this acting as a tool of security.

It would be a negative externality when its constant barking causes disturbance to the neighbors