The Role Of The Government In The Case Of Externalities
[ad_1]
When costs imposed on others who are not market participants, or they receive benefits as a result of someone’s private decision, a positive external benefit/costs , may occur. The government must ensure that external costs are added to the cost of producing a good or service. This will ensure that optimal output is achieve. An example of this medical research. We would all benefit from a cure for cancer. However, the company doing the research is only concerned with what it will cost them to undertake the research. For this discussion, first discuss what the role of the government is in the case of externalities. Then discuss the difficulties that are involved with determining costs and benefits. Lastly, discuss how the following positive externalities could be perceived as negative and vice versa:
Positive Corporate Externalities
A workplace vaccination program reduces absenteeism for the company but also benefits society as a whole by slowing spread of infectious diseases.
Insurance discounts for those who complete driver education programs can reduce payouts for company, costs and accidents for drivers, and motor vehicle injury rate for society.
Voluntary installation of pollution control systems can win a manufacturer a tax break, benefit nearby residents by lowering pollution and benefit society as a whole by lowering pollution-related costs.
Negative Corporate Externalities
Air pollution from industrial manufacturing contributes to respiratory and cardiovascular diseases and cancer, agricultural damage and climate change.
Tobacco use leads to increased hospitalizations and lost productivity, the costs of which are borne by tax payers and government.
Industrial production of meat led to farms that were easier to run, with fewer and often less-skilled employees, and a greater output of uniform animal products. Social costs include contributing to the increase in the pool of antibiotic-resistant bacteria because of the overuse of antibiotics; air quality problems; the contamination of rivers, streams, and coastal waters with concentrated animal waste; animal welfare problems, mainly as a result of the extremely close quarters in which the animals are housed.(source (Links to an external site.))
Place your order now for a similar paper and have exceptional work written by our team of experts to guarantee you A Results
Why Choose US:
11+ years experience on custom writing
90% Return Client
Urgent 3 Hrs Delivery
Your Privacy Guaranteed
Unlimited Free Revisions
Money Back Guarantee
[ad_2]
Source link
"96% of our customers have reported a 90% and above score. You might want to place an order with us."
