Untitled document MBAF 504- Individual Case Study (15 Points) Identify a negative externality created by economic units (firms and consumers) and provide an extensive analysis of the case by taking...

Introduction:
Externalities are expenses or advantages borne by producers that are either monetary or not monetary. Externalities can be positive or negative, and they can be associated with the production or consumption of commodities or services. Costs and benefits might be private for a person or an organization, or they can be social, affecting society as a whole.
Externalities are measured in the same manner that economists measure everything else. In other words, it is determined by the willingness of individuals to pay. Thousands of individuals pay ten dollars for pure air, but external pollution costs tens of thousands of dollars. There are no external variables if no one bothers about bad air. If someone enjoys foul air, then the willingness of this uncommon individual to pay for smog must be reduced from the desire of the rest of the population to pay for population reduction. The notion of externalities does not elicit much debate in economics, but its implementation is called into doubt. Externalities, according to free market supporters, are controllable. The consequences, according to critics of free markets, are numerous and persistent.
Agriculture's beneficial and bad environmental services are unexpected results of market activity that affects people, not the cause of these impacts. Because these by-products are rarely priced on the market, their economic worth is uncertain or impossible to calculate. It is difficult to capture all of agriculture's positive externalities. The same phenomena might be favorable in one scenario and bad in another, favorably and negatively assessed by one observer and negatively assessed by another. Negative externalities can be reduced by positive externalities, and vice versa. Furthermore, positive and negative externalities like soil salinization and increased job prospects in irrigated agriculture are frequently linked.
Background on the use case and the theories of externality:
Some negative environmental effects, such as soil erosion, might have an impact on a farm's future revenue potential and so must be considered in a farmer's decision-making. However, the difficulty with many environmental implications is that manufacturers do not pay since there is no mechanism in place to assess the cost of harm and make manufacturers pay for it. There is a disparity between marginal private production costs since these environmental costs are external (which producers bear) and the marginal societal cost of production (which determines the socially optimal level of production).
The polluter pays concept states that the expense of upkeep must be borne by the person causing the pollution in order to prevent harm to human health or the environment. For example, factories that generate potentially harmful byproducts are normally responsible for their proper disposal. The polluter pays concept is one of a larger set of principles for global sustainable development.
Any unit of renewable natural resources that must be managed under common property rights to maintain sustainability is characterized as common property. Everything else is regarded as personal property. Many renewable natural resource units, such as forests, water supplies, fish farms, and farms, can be managed sustainably as private property, for example, through collective governance systems, government programs, corporations, or farmers, in accordance with existing property laws. As a result, common property is administrative rather than tangible. The air we breathe, the rivers we share, and the sea are all examples of common property.
A phenomenological general research of an organization in that industry
In many aspects, the environmental effect of irrigated agriculture is linked to the management of irrigated areas' water and salinity balance. This involves reducing the quantity of water needed to remove salt from the root zone as well as the amount of land needed to...