Assume the inventor of the snow cleaner gets only 3 percent of the benefits, the remainder consisting

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Assume the inventor of the snow cleaner gets only 3 percent of the benefits, the remainder consisting of reduced medical bills for back pain. In the general public, explain why this is an externality. How large is it? Is it a beneficial externality? How will it affect the number of snow cleaners it is most profitable to manufacture, as compared to the number that best contributes to the general welfare?
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Economics Principles and Policy

ISBN: 978-0538453653

12th edition

Authors: William J. Baumol, Alan S. Blinder

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