Multiple Choice
Paul owns a mushroom farm.The smell from the farm reduces the value of adjacent houses by a total of $30 000.Suppose that the benefit of the mushroom farm to Paul is $20 000.Assuming that Paul has the legal right to own the farm, a possible private solution to this problem is that:
A) adjacent property owners pay $20 000 to Paul to stop farming mushrooms
B) Paul pays the adjacent property-owners $25 000 for their loss in house-values
C) adjacent property owners pay $25 000 to Paul to stop farming mushrooms
D) there is no private solution that would improve this situation
Correct Answer:
Verified
Correct Answer:
Verified
Q67: When one firm sells its pollution permit
Q68: When dealing with consumption externalities, government can
Q69: A positive production externality will cause a
Q70: If the government were to limit the
Q71: If a particular market is associated with
Q73: Policies aimed at reducing an externality sometimes
Q74: The Internet is a good example of
Q75: Some economists believe that technology spillovers are
Q76: Graph 10-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB8859/.jpg" alt="Graph 10-1
Q77: Assuming that Jane has the legal right