Multiple Choice
Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly) .
-Refer to the information above.The issue of Bob,his neighbours,and the state of his lawn is an example of a(n)
A) positive externality.
B) external cost.
C) negative externality.
D) positional externality.
E) prisoner's dilemma.
Correct Answer:

Verified
Correct Answer:
Verified
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