AGEC 315 - HW6 Graded A+
New firms focused on "natural" foods enter the market for processed food and traditional firms lose
customers and eventually shut down. Does this scenario represent an externality? ️No
Farmer A is mad at farmer B for being so efficient, so farmer A lights a match to...
New firms focused on "natural" foods enter the market for processed food and traditional firms lose
customers and eventually shut down. Does this scenario represent an externality? ✔️No
Farmer A is mad at farmer B for being so efficient, so farmer A lights a match to farmer B's field. Does
this scenario represent an externality? ✔️No
Some farmers have not applied the recommended amount of herbicide (a chemical to kill weeds). This
has created superweeds that are resistant to the herbicide and these superweeds spread to the fields of
other farmers. Does this scenario represent an externality? ✔️Yes
Bees provide two main benefits: (1) producing honey and (2) pollinating crops. Fruit producers in
California pay beekeepers to place their beehives in the fruit fields to pollinate the crop. Does the use of
bees to pollinate crops represent a positive externality in this scenario? ✔️No, it is not an externality
A person maintains a beautiful lawn. This increases the value of the person's home as well as the value
of other homes in the neighborhood. Does this scenario represent an externality? ✔️Yes
A farmer applies fertilizer on her field and after a heavy rainfall some of the fertilizer is lost from the
field and enters the nearby reservoir. Does this scenario represent an externality? ✔️Yes
An organic farmer has a field next to a no-till farmer. Some of the chemicals used by the no-till farmer
drift onto the organic farmer's field and he can only sell a portion of his field as certified organic. Does
this scenario represent an externality? ✔️Yes, it is an externality
The housing crisis of 2008 caused investors to seek new investment opportunities. They invested
substantial amounts in agricultural land which increased agricultural land values and made it more
difficult for young farmers to be able to purchase land. Does this scenario represent an externality?
✔️No, it is not an externality
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CertifiedGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.
