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enyata [817]
3 years ago
8

⦁ a local drama company proposes a new neighborhood theater in san francisco. before approving the permit, the city planner comp

letes a study of the theater's impact on the surrounding community. ⦁ one finding of the study is that theaters attract traffic, which adversely affects the community. the city planner estimates that the cost to the community from the extra traffic is $5 per theater ticket. what kind of externality is this?
Business
1 answer:
aleksandrvk [35]3 years ago
3 0
<span>This is a negative externality. Since the cost of the traffic being in the community is not being borne by the theatre company itself, it is negative. The community as a whole is having to pay for the extra $5 in costs that will be accrued as a result of selling each ticket.</span>
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<h2>What is Break-even point?</h2>

The amount (total sales revenue) or output level (total units produced) at which a business has recouped all variable and fixed costs is known as the break-even point.

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Three values must be known in order to calculate a company's breakeven threshold in sales volume:

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learn more about breakeven point at: <u><em>https://brainly.in/question/31484328?msp_srt_exp=6&referrer=searchResults</em></u>

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Answer:

The BEP will decrease, which is good.

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