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lectur1-page20 - minimum His/her place looks O.K but it is...

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As you recognize, a positive externality is just the opposite of a negative externality. And again, an example is the best way to explain this concept. Let us assume that you own a home in a sub-division of Raleigh. You spend thousands of dollars landscaping and maintaining your home site. You maintain your house very well. Your neighbor is one of those folks who just does the
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Unformatted text preview: minimum. His/her place looks O.K., but it is not on the Parade of Homes list. Do your actions increase the value of your neighbors home? If he/she were to place their home on the market, would the potential buyer look around at neighbors homes and the neighborhood in general? 20...
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