Nomuundalai.B Homework 12 Microeconomics
pp. 213-214 Problems and Applications
1. The first way which is the car with club maybe impose negative externality on car.
This policy results tax on users who took club. On the other side, the way Lojack
would impose positive externality because it results subsidy for users.
2. A). The reason why fire extinguishers exhibits positive externality is it has benefits
even they bought for nothing special reason it can prevent from fire.
B).Draw.
