A bakery pays an electrician to install brighter lighting outside its shop. People walking along the pavement at night can now see hazards more clearly.
Explain why the social benefit of the new lighting is greater than the private benefit to the bakery.
127 exam-style questions on OCR GCSE Economics 3.8 Limitations of markets, covering 3.8.1 Positive and negative externalities, 3.8.2 Policies to correct externalities, 3.8.3 Impact of externality policies, and 3.8.4 Costs and benefits of externality policies. Each one has a worked solution and a mark scheme showing where the marks go.