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9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities Integration of different types of businesses through merger or acquisition Keep in mind that sometimes private solutions to externalities are not achieved. For instance, this could occur when communications barriers or social customs are important enough relative to the potential gains involved that 9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities the government should never step in Integration of different types of businesses through merger or ac a private solution is not feasible Keep in mind that sometimes private solutions to externalities are not achie customs are important enough relative to the potential gains involved that the market system has a crisis communications barriers or social

9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities Integration of different types of businesses through merger or acquisition Keep in mind that sometimes private solutions to externalities are not achieved. For instance, this could occur when communications barriers or social customs are important enough relative to the potential gains involved that 9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities the government should never step in Integration of different types of businesses through merger or ac a private solution is not feasible Keep in mind that sometimes private solutions to externalities are not achie customs are important enough relative to the potential gains involved that the market system has a crisis communications barriers or social

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 6SCQ: Classify the following pollution-control policies as command-and-control or market incentive based....
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9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities Integration of different types of businesses through merger or acquisition Keep in mind that sometimes private solutions to externalities are not achieved. For instance, this could occur when communications barriers or social customs are important enough relative to the potential gains involved that
Transcribed Image Text:9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities Integration of different types of businesses through merger or acquisition Keep in mind that sometimes private solutions to externalities are not achieved. For instance, this could occur when communications barriers or social customs are important enough relative to the potential gains involved that
9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities the government should never step in Integration of different types of businesses through merger or ac a private solution is not feasible Keep in mind that sometimes private solutions to externalities are not achie customs are important enough relative to the potential gains involved that the market system has a crisis communications barriers or social
Transcribed Image Text:9. Private solutions to correct for externalities Consider the following scenario: Suppose that a brewery enjoys a large increase in customers whenever the blues bar next door features a band playing live music, because it can be easily heard from the brewery. The blues bar owner decides to purchase the brewery so that he can internalize this positive externality. Which of the following private solutions resolving the externality of live music took place in this scenario? Moral codes and social sanctions Contracts Charities the government should never step in Integration of different types of businesses through merger or ac a private solution is not feasible Keep in mind that sometimes private solutions to externalities are not achie customs are important enough relative to the potential gains involved that the market system has a crisis communications barriers or social
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