On Saturdays, Stan goes to the park to play his saxophone. Some of the people in the park love listening to Stan play, while others find his music really annoying. In this case, Stan's saxophone playing generates:
A)a negative externality.
B)a positive externality.
C)neither a positive nor a negative externality.
D)both positive and negative externalities.

Question

Quizplus · Accepted Answer

Since Stan's music imposes a cost on some, but generates a benefit to others, it generates both positive and negative externalities.

On Saturdays, Stan Goes to the Park to Play His