Multiple Choice
Suppose that Martin owns a lighthouse and Lewis owns a nearby port.Martin's lighthouse benefits only those ships that enter Lewis's port.What is the preferred method to combat the free-rider problem
A) Martin charges a fee for all ships that pass by Lewis's port.
B) Martin charges Lewis a usage fee.
C) Martin can exclude Lewis's port from benefiting from the lighthouse by simply turning the power off.
D) Martin sells his lighthouse.
Correct Answer:
Verified
Correct Answer:
Verified
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