Various new cars are sold with sensors that automatically turn on the headlights at night or in low light conditions. Would these sensors create a positive externality or a negative externality? How?
Cars with these new sensors would likely create positive externalities. Other drivers would be safer because those driving with these sensors would always have their headlights on when driving at night, in the rain, etc.
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Any change in a firm’s fixed costs will change its profit-maximizing level of output.
Answer the following statement true (T) or false (F)
A competitive market is always efficient
Indicate whether the statement is true or false
In U.S. trade law, the ________ allows for the imposition of restrictions on fairly traded imports that cause or threaten harm to domestic industry
A) escape clause B) countervailing duty C) GATT D) fair trade law
Someone wants to open a new restaurant in town. Identify which of the following would be a barrier to entry.
a) None of the available property in town is zoned for business use. b) The price of tablecloths has risen. c) Consumers buy only from businesses they know. d) The town requires all businesses to pay a hefty annual permit fee. e) The town requires new businesses to pay a hefty permit fee.