HR MANAGEMENT Discussion Question 1: Explain why externalities prevent the attai
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Question
HR MANAGEMENTDiscussion Question 1: Explain why externalities prevent the attainment of efficiency when goods are traded in competitive markets. What kind of information must be gathered in order to internalize an externality?
Discussion Question 2: What are the essential differences between pure public goods and pure private goods? What are two examples of goods sold by governments in markets, and what are two examples of partially public goods that are produced and sold by private firms for profit. HR MANAGEMENT
Discussion Question 1: Explain why externalities prevent the attainment of efficiency when goods are traded in competitive markets. What kind of information must be gathered in order to internalize an externality?
Discussion Question 2: What are the essential differences between pure public goods and pure private goods? What are two examples of goods sold by governments in markets, and what are two examples of partially public goods that are produced and sold by private firms for profit.
Discussion Question 1: Explain why externalities prevent the attainment of efficiency when goods are traded in competitive markets. What kind of information must be gathered in order to internalize an externality?
Discussion Question 2: What are the essential differences between pure public goods and pure private goods? What are two examples of goods sold by governments in markets, and what are two examples of partially public goods that are produced and sold by private firms for profit.
Explanation / Answer
2. Differences between pure public goods and pure private goods: The pure public good is the one, which every one is eligible to have it, to consume it, and no one can be exclued and its consumption is non-revival in nature. It means the consumption of one unit by one consumer does not show impact its availability on other consumers.
Exaple for Public good is A TELEVISION SHOW oferred by different channels, online services oferred by various sources includes government. If you want to watch some movies in online, you need to pay fee to the service provider, which helps them to get profits.
A pure private good, on the other hand is the one, which consumption is rival and consumer can be excludable. Where the availability and eligibility is specific in nature, the consumption of one unit may impact on its availability. When you consume a good, the number of units available to others will decrease, for example having a meal.
Exmple for private services are: Medical services oferred by government, Education seats to students and scholors
1. Some of the external actions by others may effect the performance and functioning of your firm, these are called externalities. Because most of the firms are running in competitive environment, the action of others definitely impacted on your firm too. If the production levels are increased by other producer may leads you to decline your product's price, because he may decline the price in market. As the competitory it is inevitable to you to practice it.
You must aware of all factors like economic facors includes: tax structures, inflation rates, government business policies etc, and industry information like the number or rivals in the market, their business strategies, etc, and your position like what is your total expenditure, total cost, your targeted revenues and other aspects.
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