What possible negative externality might result from turning a large area of land into a park?.

1 answer:

8 0

The possible negative externality that might result from turning a large area of land into a park is high traffic.

<h3>What is a Negative externalities?</h3>

in economics, a negative externality is a phenomenon that exists when the production or consumption of a product results in a cost to a third party or when individuals bear a portion of the cost associated with a good’s production without having any influence over the related production decisions.

In conclusion, an air and noise pollution are commonly cited examples of negative externalities. When a negative externalities is present, the markets will overproduce because the costs of production for the firm are understated and profits are overstated.

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