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While studying economics, you will come across many intricate topics, and one such topic is externalities. Students often complain about getting confused in this concept because it is a bit tricky to comprehend. If you are having any confusion in this concept, then you must opt for externalities homework help.

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What is the topic of externalities all about?

Externality is a resultant of economic activity that is undertaken by someone else, but its consequences are experienced by the people or parties who had no relation with such an activity. The most commonare the two types of externalities namely the positive externality and the negative externality. Thus you can also say that externalities can either prove to be a cost or turn out as a benefit for that party who didn’t even actually initiated such an economic activity.

With externalities homework help everything will become easy to comprehend.

Externalities explained with the help of examples

Let us first understand the case of negative externality. Suppose there is an industrial enterprise that is causing a lot of pollution and due to which the environment, as well as the health of the people in surrounding areas,is getting affected. This is a situation of negative externality where the third party is bearing the consequences without undertaking the activity themselves.


The example of positive externality can be well disciplined and highly competent workforce in an industrial sector which has raised the level of productivity to manifolds. So, as a result, the company’s profits will multiply without actually doing anything in the first place.

If you will look at the broader picture,then externalities can also be described as negative, positive, positional, inframarginal and technological. You will understand everything to its core by opting for externalities assignment help.

Why regulations are needed?

The government adopts policies from time to time so that externalities can be checked and it will ensure that the costs, as well as the benefits, should fall on those parties who are actually engaged in such economic activities.

If the markets will remain unregulated, then there will be externalities to a great extent. So the prices in such an economy will not be able to depict the entire social cost or benefit associated with the economic transactions. These kinds of markets are generally inefficient when analyzed from a broader perspective. So regulations are essential in this matter.

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