What is a negative externality? Construct a graph for the market for Steel showing the market price and quantity when the firms are dumping their industrial waste in the local waterways. What is the motivation for firms to pollute the local waterways?
Explain how third parties are adversely affected from the pollution and how the negative externality can be internalized. Draw into the graph the appropriate shift of the supply curve which will remedy the negative externality and bring about the socially optimal level of output.
What is a positive externality? Construct a graph for the market for vaccine shots showing the market price and quantity.
Explain how third parties are benefiting from those who consume vaccine shots and how the positive externality can be internalized. Draw into the graph the appropriate shift of the demand curve which will remedy the positive externality.
income to purchase more milk to adjust to their healthy lifestyle. This will create an opportunity for A2 to earn more. However, Australia economy is experiencing a slow growth, this will cause the profitability to decrease. In addition, some parents prefers to breastfeed their child therefore, this creates a threat to the demand of infant milk. Social Social factors are general environment that represents the demographic characteristics, norms, customs and values of the population within which the organization operates (B2U – Business-to-you.com, 2019). Infant milk industry, the targeted audience would be babies, however some parents prefer to breastfeed their child. Technological Technological factors are revolution in technology that may affect the operations of the industry and the market favourably or unfavourably. It also affects the decision of the company whether to enter certain industries or to launch a product (B2U – Business-to-you.com, 2019). Factors that affects the operations could be one of the few followings impact on cost production, impact on product offer and technological development. If all the technology implemented by A2 Milk benefits the company, other competitors will try to copy their ideas. All the mentioned factors are all interconnected in technology because if the innovation is popular and it affects competitors revenue, others wills try to copy the idea. These are factors that needs to be monitored at all times, causing it to be a threat. However, >GET ANSWER