Social Studies, 26.11.2019 04:31 lberries08
Afamiliar example of a negative externality is loud music on a college campus. in principle, it should be possible to internalize this externality by permitting students to negotiate rights to play music during particular times. the most likely reason that this does not happen is that:
select one:
a. most students don't view loud music as a negative externality.
b. agreements arising from such negotiations could not be enforced.
c. most students are unfamiliar with the coase theorem.
d. the transaction costs associated with identifying and establishing communication with students would be high.
Answers: 1
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Afamiliar example of a negative externality is loud music on a college campus. in principle, it shou...
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