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.For Bob to have an unkempt lawn results in __________ because the total economic surplus is __________.
A) efficiency;non-negative
B) inefficiency;larger than it could have been
C) efficiency;the same in either case
D) inefficiency;smaller than it could have been
E) inefficiency;negative
Correct Answer:

Verified
Correct Answer:
Verified
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