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poizon [28]
3 years ago
11

why is government intervention often crucial when dealing with both positive and negative externalities?

Business
1 answer:
Dennis_Churaev [7]3 years ago
6 0

Answer:

Because the government can use her sovereign power to both mitigate negative externalities as well as encourage positive externalities.

Explanation:

A positive externality occurs when the transaction between a producer and end user benefits a third party that did not take art in the process.

A very Good example is Education. There is a third party benefit to the society when we have more educated citizens.

A negative externality happens when the business transaction between a manufacturer and consumer affects a third party adversely. a typical example is cigarettes. When cigarettes is consumed by the end user, the smoke can affect the health of a third party that was not part of the initial transaction.

To deal with both positive and negative externalities, government intervention is very crucial.

Government encourages positive externalities like education by subsidizing the cost of attending a school. They also enact laws that make basic education compulsory.

In the case of negative externalities, Government can intervene with a ban on producing harmful goods and also set a legislation about smoking in public laces to mitigate  the health complications caused by third party inhalation.

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If an investment is producing a return that is equal to the required return, the investment's net present value will be:
harina [27]
The net present value would be zero.

Hope this helped! :)
4 0
3 years ago
Which marketing mix element deals specifically with retailing and marketing channel management?
goldfiish [28.3K]

The Correct Response is Option A

A) PLACE

  • Place is the component of the marketing mix that explicitly addresses the management of the retailing and marketing channels. Customers typically reach out to retailers first to purchase goods, and this is where marketers may influence consumers and successfully engage with them.
  • Place. The location component of the marketing mix more frequently addresses commerce and marketing channel management particularly.

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3 0
1 year ago
What is the key value proposition of Google Search campaigns? a. Appear as a text ad, a video ad, or a banner ad on one of Googl
Sophie [7]

Answer:

The correct answer is Option D.

Explanation:

The key value proposition of Google Search campaign is to show your advertisements when a client is looking for your item or administration.  

You should realize that <u>what value proposition is</u>-

The value proposition is an offer that explains to possibilities why they ought to work with you as opposed to your rivals, and makes the advantages of your items or administrations completely clear from the start.

All the other options are not relevant in this scenario.

5 0
3 years ago
Draw a curve that shows the relationship between quantity and total revenue when the demand curve for umbrellas is linear.
irakobra [83]

Draw a curve that shows the relationship between quantity and total revenue when the demand curve for umbrellas is linear ​increases.

If demand is elastic (price elasticity > 1), price and total sales are negatively related. In other words, an increase in price leads to a decrease in total sales.

Revenue is the amount of money generated WITHOUT subtracting the costs of business. In economics, the total sales test is a means of determining whether demand is elastic or inelastic. If an increase in price leads to an increase in total sales, demand is said to be inelastic because the increase in price does not significantly affect the quantity demanded.

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5 0
1 year ago
With recent reports of identity theft, Mr. Adams, the CEO of a construction company, is concerned about his employees' privacy,
svetlana [45]

Answer:

Moral rights

Explanation:

The moral rights approach says that decisions must be consistent with fundamental rights and privileges, for example, freedom, life, health, privacy. These rights are embodied in the United Nations Declaration of Human Rights.

5 0
3 years ago
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