Business, 20.04.2020 23:04 sugaree95

In each of the following situations, identify if there is a positive or negative externality in play. Explain you answer thoroughly.

A local bridal shop shares a strip mall with eight other businesses. Recently all have agreed that the signage at the road needs a facelift. Although all eight businesses use the sign, the other seven are not willing to pay for a fresh paint job. The bridal shop decides to foot the bill and, on their own, they update the sign. Is there a positive or negative externality in play?

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In each of the following situations, identify if there is a positive or negative externality in play...

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