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Private solutions to correct for externalities Consider the following scenario


9. Private solutions to correct for externalities Consider the following scenario: Suppose that a chicken farm uses a nearby 9. Private solutions to correct for externalities Consider the following scenario: Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted by the minerals in the waste matter. The local office of a nonprofit environmental organization collects enough donations to fund a campaign to stop the farm's pollution. Which of the following types of private solutions to the externality of pollution has occurred in this case? Contracts Moral codes and social sanctions Integration of different types of businesses through merger or acquisition Charities It's important to note that sometimes private solutions to externalities do not work. For example, this occurs when communications barriers or se customs are important enough relative to the potential gains involved that Grade It Now Save & Continue Continue without saving

Feb 07 2020 View more View Less

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