Answer to Question #219134 in Microeconomics for CHIPMAN

Question

Distinguish between different categories of positive and negative externalities.

Answer 1

Positive externalities are benefits that people outside the marketplace receive as a result of a company's activity, but for which they do not pay any money. Unpleasant externalities, on the other hand, are the negative repercussions experienced by outsiders as a result of a firm's conduct for which it is not penalized by the market.