what is an anology for pollution? I want a unique answer
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Hey There! Pollution by a firm in the course of its production which causes nuisance or harm to others. The harvesting by one fishing company in the ocean depletes the stock of available fish for the other companies and overfishing may result. This is an example of a common property resource, sometimes referred to as the Tragedy of the commons.
A business, like an airline company or software company, may purposely underfund one part of their business, such as their pension funds, in order to push the costs onto someone else, creating an externality. Here, the "cost" is that of providing minimum social welfare or retirement income; economists may more frequently attribute this problem to the category of moral hazards.
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A business, like an airline company or software company, may purposely underfund one part of their business, such as their pension funds, in order to push the costs onto someone else, creating an externality. Here, the "cost" is that of providing minimum social welfare or retirement income; economists may more frequently attribute this problem to the category of moral hazards.
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