Which of the following activities, if any, represents an external cost?
a. The benefits that accrue to society when an individual receives a college education
b. The increase in property values of vacant lots in an area near where a new amusement park is constructed.
c. The pollination of apple trees that occurs when a beekeeper locates next door to an apple orchard.
d. None of the above
d
You might also like to view...
Refer to Figure 10-1. When the price of hoagies increases from $5.00 to $5.75, quantity demanded decreases from Q1 to Q0. This change in quantity demanded is due to
A) the fact that marginal willingness to pay falls. B) the law of diminishing marginal utility. C) the income and substitution effects. D) the price and output effects.
In the strategic view of bargaining:
a. You want to improve your opponent's outside options b. You want to decrease your outside options c. Bargaining is of a prisoner's dilemma game d. Bargaining is of a game of 'chicken'