Discuss Microeconomics-Externalities.
Discussion – ExternalitiesAs you’ve learned from the Thinkwell videos, externalities occur when an activity has some external cost or benefit that the person/firm doing the activity does not privately incur. Examples given in the videos included pollution (negative externality) and flu shots (positive externality). For this discussion, think of another example of an activity that can have either positive or negative externalities. What is it and what kinds of externalities does it produce? What kind of tax or subsidy (or other method) can be used get to the socially optimal quantity, and how might the proper amount be measured?
