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Q. What do you mean by Externality?
An externality exists when the actions of one individual affect the wellbeing of other individuals without any compensation taking place. For illustration, the discharge of a CSO (combined sewer overflow) will be a negative externality to informal recreational users of a river corridor, to the extent that it will tends to an aesthetic degradation of the river, for which they will not receive any financial compensation. You may also have positive externalities, for example, an industry which uses a better waste treatment process will improve the river quality.
Change in the population of consumers: Population changes may affect the demand for a commodity.Areas of high population may demand more of certain commodities than areas of low
explain the main criteria for classifying firms into industries.which criteria serve the better and why?
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Prove the theory of second best with the help of a diagram
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Steel and aluminum production Steel Canada 500, France 1200 Aluminum Canada 1500, France 800 The maximum amount of steel or aluminum that Canada and France can produce if they full
4 models
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