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Author Question: Positive externalities are created when A) other consumers reduce their demand for coffee and ... (Read 8 times)

Chloeellawright

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on: Jul 1, 2018
Positive externalities are created when
 
  A) other consumers reduce their demand for coffee and price thereby declines.
  B) farmers spray pesticide in their fields and it washes into the local river after the first rainstorm.
  C) your neighbor plants beautiful trees and flowers in her yard.
  D) you purchase the Mona Lisa and lock it in a vault.

Question 2

Students who talk loudly with each other in class
 
  A) create an externality because other students cannot follow the lecture as well.
  B) disturb nobody.
  C) benefit the other students in class because they engage in conversation.
  D) only create an externality if they talk about something unrelated to class.
Microeconomics ¦ Perloff ¦ 8th Edition
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kingdude89

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Reply #1 on: Jul 1, 2018
Answer to Question 1

C

Answer to Question 2

A


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Chloeellawright

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Reply #2 on: Jul 1, 2018
Correct answers!


kingdude89

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Reply #3 on: Jul 1, 2018
Great! Please up vote :D


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