Multiple Choice
Assume that the values in the table above are representative of most neighbourhoods,i.e. ,unique colours are an external cost while traditional colours are an external benefit.One could predict that
A) the distribution of unique and traditional colours will be 50-50.
B) if one house is uniquely coloured,all houses will be.
C) if one house is traditionally coloured,no unique coloured houses will be present.
D) colours of houses will be relatively homogeneous.
E) colours of houses will be relatively heterogeneous.
Correct Answer:

Verified
Correct Answer:
Verified
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