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 private solutions resolving the externality of pollution took place in this scenario? O Moral codes and social sanctions. O Charities O Contracts O 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 an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of
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 private solutions resolving the externality of pollution took place in this scenario? O Moral codes and social sanctions. O Charities O Contracts O 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 an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of
Chapter1: Making Economics Decisions
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Transcribed Image Text: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 private solutions resolving the externality of pollution took place in this scenario?
O Moral codes and social sanctions
O Charities
Contracts
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 an excessive amount of time or
money must be spent for parties to reach an agreement. This describes the problem of
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