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Author Question: Which of the following will lead to an efficient private solution if negative externalities are ... (Read 30 times)

tiara099

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on: Jun 29, 2018
Which of the following will lead to an efficient private solution if negative externalities are present in a market?
 
  A) The party having the legal right is taxed.
  B) The party creating the externality has the legal property right.
  C) The party suffering from the externality has the legal property right.
  D) The parties involved negotiate with each other and reach an agreement.

Question 2

The opportunity cost of producing a unit of consumption at point b in the figure ________ point a.
 
  A) is greater than at
  B) is less than at
  C) cannot be compared with
  D) is the same as


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momolu

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

B


tiara099

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Reply 2 on: Jun 29, 2018
Wow, this really help

kusterl

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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