Question

Use the concept of externalities to explain why if left to private decisions, the usage of face masks to prevent the transmission of COVID-19 is likely to be inefficiently low.

Answer 1

Externality is a cost or benefit incurred. Negative externalities create damage for the third party which occurred from economic transaction or consequences. Under negative externality there is no property right. Anyone can make harm to others. The use of face masks during the covid19 period will help to reduce the transmission of the virus. This virus will be transmitted through high level of direct communication with the patient. The government implemented law to wear masks when going outside. There are strict measures were taken those who are not wearing this masks.
But on the other hand, most of the people were not use the mask in its proper manner. Sometime they used the mask for mouth, chin or just hang in the ears. There is no need for using the masks like this. When an infected person comes out from his home to the town, he will make several contacts between other people. Through the virus will be transmitted from one person to another. Efficient use of face mask and sanitizers will help to avoid the transmission. But most of the people are not bothered about this. They only use the mask to avoid the penalty from police or the fear towards police. This unethical activity will leads to the damage for other people. Using the concept of externality, following this kind of mannerism will affect the health of other people in the society. So every citizen having their responsibility to kill the virus, or at least reducing the transmission. We should bother about others lives also.