Describe two examples of positive externalities and two negative externalities related to engineering?
Answers
Answer:
a factory that pollutes the environment creates a cost to society, but those costs are not priced into the final good it produces. These can come in the form of 'positive externalities' that create a benefit to a third party, or, 'negative externalities', that create a cost to a third party.
A negative externality exists when the production or consumption of a product results in a cost to a third party. Air and noise pollution are commonly cited examples of negative externalities.
Answer:
An externality is a cost or benefits a producer generates but does not personally bear or receive.
Explanation:
Externalities are typically bad. A well-known harmful externality is pollution. A business may choose to start new, environmentally hazardous operations in an effort to reduce costs and boost profits. The company incurs costs as a result of growing its activities, but it also makes profits that outweigh those costs.
It becomes a negative externality, nevertheless, when the externality also raises the overall cost to society and the economy. When social costs outweigh private costs, externalities are negative.
There are some beneficial externalities. When both the social and private spheres benefit, there are positive externalities. A company's research and development (R&D) efforts can have a beneficial externality. R&D boosts a company's private earnings but also has the added benefit of increasing the general level of knowledge within a society.
An externality can result from the creation or consumption of a good or service and can be both positive and negative. Both private (to an individual or an organization) and societal (affecting society as a whole) costs and benefits are possible.
#SPJ3