Using the Information in Question 30, What Would Be a Private

Multiple Choice

Using the information in question 30, what would be a private solution to the above externality?

A) under the Coase theorem the two companies should be able to negotiate away the externality
B) the two companies would need to trade permits for river pollution in order to achieve an optimal outcome
C) the fishing firm could buy the fish-food manufacturing company
D) the fishing firm should continue to make the most of the positive externality