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Advanced Placement (AP), 17.12.2019 07:31 TheViperMlg23676
1. in each of the following situations, identify if there is a positive or negative externality in
play. explain you answer thoroughly.
a. a local bridal shop shares a strip mall with eight other businesses. recently all
have agreed that the signage at the road needs a facelift. although all eight
businesses use the sign, the other seven are not willing to pay for a fresh paint
job. the bridal shop decides to foot the bill and, on their own, they update the
sign. is there a positive or negative externality in play? why?
b. a local church holds a "4th of july celebration" and invites everyone in their area
to come enjoy free bounce-houses, live music and snow cones..
c. a local high school decides to expand their bus ramp to buses get in and out
of the school more quickly. the construction process takes two months and
creates serious traffic issues for the commuters in that area of town.
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1. in each of the following situations, identify if there is a positive or negative externality in
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