Author Question: In the context of collective decision-making, external costs are _____. a. the costs imposed on ... (Read 314 times)

cnetterville · **on:** Jul 1, 2018

In the context of collective decision-making, external costs are _____.

a. the costs imposed on everyone in the group
b. the costs imposed on those outside the group
c. the costs imposed on those who voted for the decision
d. the costs imposed on those harmed by the decision

Question 2

Robinson Crusoe is stranded on an island. He finds that coconuts are freely available (zero harvest cost), but fish are difficult to harvest and require a lot of energy. As a result, harvesting fish has a high price.

If coconuts and fish are imperfect substitutes, what is Robinson Crusoe likely to consume? A) He will consume more coconuts than fish.
B) He will consume more fish than coconuts.
C) He will consume equal amounts of both goods.
D) Not enough information is given.