what is analogy for pollution
Answers
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.
Individuals collectively choose to use a public transportation resource (such as roads), imposing congestion costs on all other users.
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.
A property tycoon buying up a large number of houses in a town, causing prices to rise and therefore making other people who want to buy the houses worse off, perhaps by excluding them from the housing market. These effects are sometimes called "pecuniary externalities"; many economists do not accept the concept of pecuniary externalities, attributing such problems to anti-competitive behavior, monopoly power, or other definitions of market failures.
(plz mark my answer as brainlist)
In economics pollution is the textbook example for an externality, which occurs when a private cost is less than a social cost. so when a firm pollutes, it is harming society more than it harms itself, so there is no incentive for the firm to reduce production in order to reduce its pollution levels. thus, governments have implemented tax schemes and regulations to impose private costs on the firms. this extra cost increases the private cost to the level of the social cost, and an optimal level of pollution is reached. in this case, an analogy for pollution is any externality that a society faces. i just took a quick look at some common externalities on wikipedia and here some of the examples:
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.
Individuals collectively choose to use a public transportation resource (such as roads), imposing congestion costs on all other users.