a. Jerome has a beautifully landscaped front lawn with lots of colorful flowers. Landscaped lawns produce a landscaped lawns exist relative to the socially efficient quantity. externality. b. Dave takes advantage of the low price of gas to purchase a sports utility vehicle. Sports utility vehicles generate a externality. sports utility vehicles are produced relative to the socially efficient quantity. c. Susan decides to walk to work instead of driving. Walking to work creates a externality.

a. Jerome has a beautifully landscaped front lawn with lots of colorful flowers. Landscaped lawns produce a landscaped lawns exist relative to the socially efficient quantity. externality. b. Dave takes advantage of the low price of gas to purchase a sports utility vehicle. Sports utility vehicles generate a externality. sports utility vehicles are produced relative to the socially efficient quantity. c. Susan decides to walk to work instead of driving. Walking to work creates a externality.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter8: Market Failure

Section: Chapter Questions

Problem 1P

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