Economics of Externalities.doc - Running Head EXTERNALITIES 1 Economics of Externalities Name Institutional Affiliation Date Externalities 2 Blocking

Economics of Externalities.doc - Running Head EXTERNALITIES...

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Running Head: EXTERNALITIES 1 Economics of Externalities Name Institutional Affiliation Date
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Externalities 2 Blocking exterior sound to reduce noise pollution Noise pollution over the years has been known to affect almost everyone including anybody who lives near a busy industry or any traffic area. Noise causes a large negative externality not only to the party making the noise but also to the people around. Therefore making noise is not good. A negative externality is a cost that is suffered by a third party as a result of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organization, property owner, or a resource that is indirectly affected. In any case, that noise arises from industry, then it is a production externality. Notably, externalities commonly occur in situations where property rights over assets or resources have not been allocated, or are uncertain. From my chosen article, the author advocates for blocking exterior sound to reduce noise
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  • Spring '18
  • Professor Obura Oluoch

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