Answer:<em> Negative externality is defined as the cost that is incurred by a individual who isn't involved in the economic transaction.</em>
In the above question, the following is the example of negative externality: <u><em>smoking harms the health of nonsmokers who are nearby.</em></u>
Here, the cost is incurred by the nonsmokers who are standing nearby individuals who prefer smoking. Thus creating negative externality.
<u><em>Therefore, the correct option is (c)</em></u>
<span>If a firm is selling a search good, you will no doubt find them using informational advertising to promote their product because it has proven to be the most effective for this type of good. On the other hand, if they are selling an experience good, the advertising they will probably employ is persuasive advertising. Many companies have spent millions of dollars researching the best form of advertising for each product they offer for sale.</span>
Answer:
individuals will tend to become free riders, and private firms will have difficulty generating enough revenue to produce an efficient quantity of the good.
Explanation:
A public good is a good that is non excludable and non rivalrous. Everyone has assess to the statue and because one person is enjoying the view of the statue does not means another person cannot enjoy the view of the statue
The free rider problem is a form of market failure. It occurs when people benefit from a good or service of communal nature and do not pay to enjoy these services.
Because a public good is non-excludable, the problem of free rider increases so private firms would be unable to generate adequate revenue
Answer:
By producing a product with a lower opportunity cost
Explanation:
Given that the law of comparative advantage states that a nation is better off when it produces goods and services for which it has a comparative advantage.
To obtain a comparative advantage means "By producing a product with a lower opportunity cost."
This implies that while many nations can produce the same products, a particular nation will have the comparative advantage over other nations if its opportunity cost of producing that specific product is quite lower compared to other nations that ks capable of producing the same product.
