Minimizing Externalities on Products
- As a way to reduce the externality of the $5 radio, it is quite important to properly pay the workers, who are involved in each and every step that is involved in manufacturing the radio. Proper payments will make it possible for the workers to afford basic needs, which will generally change their way of life. An example of how proper payment can change their way of life is the workers being able to cater for their housing, their families, and their food so that they are able to work and output more. Underpaying workers means that the goods are cheaply sold at their expense. To properly pay workers, the price of the product will have to be increased, forcing the consumer to pay more for the same product. Manufacturers mainly sell goods cheaply at the expense of their workers, to encourage high consumption.
We, as a society, should also come up with ways to give back to the society that should be honored by every company or organization. The essence is that every company has something that it benefits from society, and doing a positive action in return is to show appreciation to the same society we all live in. Examples of these actions can be carrying out exercises to plant trees, cleaning of our water bodies, minimizing the Carbon IV Oxide that we release to the environment. This will help to maintain the good initial state of our environment while preventing the adverse effects caused by the destruction of natural resources. Companies should also take the initiative to educate society on the importance of purchasing goods with prices that are standard. This is to ensure that there is enough money to sustain the company and pay its workers efficiently. This will go a long way in ensuring that companies can properly pay their workers, give back to society, and manage negative effects caused by the production of the goods.