Externalities and Public Goods – End of Chapter ProblemIn 2018, a wind farm developer was ordered by the Iowa state appeals court to dismantle its newly constructed wind turbinesafter adjacent residents filed a lawsuit complaining that they never consented to the loud noise and visual obstructions of theturbines.How could the wind farm developer have utilized insights from the Coase Theorem to avoid its legal troubles and ultimatelywasting millions of dollars on wind turbines it never got to operate? Select all situations that would apply.The developer could have asked the government to set a quota on electricity generation for the wind farm so there wouldbe down time from the noise.The developer could have petitioned the local and state government to fund the wind farm.The developer could have invested in improved infrastructure for power generation to lower residents' electricity costs aswell as to promote the use of wind farms.The developer could have paid people living near the wind farm a stipend for putting up with the noise and the restrictedviews.

In the real-world there are many market inefficiencies, Coase theorem attempts to give a solution to…

How could the wind farm developer have utilized insights from the Coase Theorem to avoid its legal troubles and ultimatel wasting millions of dollars on wind turbines it never got to operate? Select all situations that would apply. O The developer could have asked the government to set a quota on electricity generation for the wind farm so there woul be down time from the noise. O The developer could have petitioned the local and state government to fund the wind farm. The developer could have invested in improved infrastructure for power generation to lower residents’ electricity costs well as to promote the use of wind farms. The velonor oould hove noid neonle livi:ng noor +he wind form o ctinend for putting un vith

How could the wind farm developer have utilized insights from the Coase Theorem to avoid its legal troubles and ultimatel wasting millions of dollars on wind turbines it never got to operate? Select all situations that would apply. O The developer could have asked the government to set a quota on electricity generation for the wind farm so there woul be down time from the noise. O The developer could have petitioned the local and state government to fund the wind farm. The developer could have invested in improved infrastructure for power generation to lower residents’ electricity costs well as to promote the use of wind farms. The velonor oould hove noid neonle livi:ng noor +he wind form o ctinend for putting un vith

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Externalities and Public Goods – End of Chapter Problem
In 2018, a wind farm developer was ordered by the Iowa state appeals court to dismantle its newly constructed wind turbines
after adjacent residents filed a lawsuit complaining that they never consented to the loud noise and visual obstructions of the
turbines.
How could the wind farm developer have utilized insights from the Coase Theorem to avoid its legal troubles and ultimately
wasting millions of dollars on wind turbines it never got to operate? Select all situations that would apply.
The developer could have asked the government to set a quota on electricity generation for the wind farm so there would
be down time from the noise.
The developer could have petitioned the local and state government to fund the wind farm.
The developer could have invested in improved infrastructure for power generation to lower residents' electricity costs as
well as to promote the use of wind farms.
The developer could have paid people living near the wind farm a stipend for putting up with the noise and the restricted
views.

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