Asked by
Chrishundra Caldwell
on Nov 17, 2024
Verified
Research into new technologies conveys neither negative externalities nor positive externalities.
Negative Externalities
Costs suffered by a third party due to an economic transaction that they were not involved in, such as pollution from a factory affecting nearby residents.
Positive Externalities
Benefits that occur to a third party not directly involved in an economic transaction, leading to underproduction if not addressed.
- Absorb the principles surrounding externalities and their impact on the efficiency of markets.
- Understand the concept of technology spillover and its classification as an externality.
Verified Answer
AM
Learning Objectives
- Absorb the principles surrounding externalities and their impact on the efficiency of markets.
- Understand the concept of technology spillover and its classification as an externality.