Microeconomics 13th Edition by Russell Sobel, David Macpherson, Richard Stroup, James Gwartney

Exercise 13

Suppose that Abel builds a factory next to Baker's farm, and air pollution from the factory harms. Baker's crops. Is Baker's property right to the land being, violated? Is an externality present? What if the pollution invades Baker's home and harms her health? Are her property rights violated? Is an externality present? Explain.