Author Question: Nick owns a dog whose barking annoys his neighbor Jane. Suppose that the benefit of owning the dog ... (Read 55 times)

biggirl4568 · **on:** Jun 30, 2018

Nick owns a dog whose barking annoys his neighbor Jane. Suppose that the benefit of owning the dog is worth 700 to Nick, and that Jane bears a cost of 500 from the barking. Assume that the city has no ordinance against barking dogs. A possible private solution that would benefit both parties is for:
a. There is no private solution that would improve this situation for both parties.
b. Jane to pay Nick 650 to get rid of the dog.
c. Jane to pay Nick 800 to get rid of the dog.
d. Nick to pay Jane 600 for her inconvenience.

Question 2

In the light of the infant industry argument, identify the industry which is likely to have substantially high initial costs.
a. Fashion designing
b. Retail industry
c. Iron and steel industry
d. Dairy industry
e. Software industry