9. Private solutions to correct for externalitiesConsider the following scenario:Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstreaminto a lake that has become thick with algae and polluted by the minerals in the waste matter. The local office of a nonprofitenvironmental 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?O ContractsO CharitiesO Integration of different types of businesses through merger or acthe market system has a crisisO Moral codes and social sanctionsthe government should never step ina private solution is not feasibleIt's important to note that sometimes private solutions to externalities do rcommunications barriers or socialcustoms are important enough relative to the potential gains involved that

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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.

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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Hand written solution is not allowed please my dear.
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