Suppose you are the party who can avoid a particular external effect at the lowest cost. You might favor a general rule that assigns liability to whichever party can avoid damage at the lowest cost because the general rule implies that other parties multiple choice a. would not likely eliminate their externalities. b. would also eliminate their externalities. c. parties may or may n
Suppose you are the party who can avoid a particular external effect at the lowest cost. You might favor a general rule that assigns liability to whichever party can avoid damage at the lowest cost because the general rule implies that other parties multiple choice a. would not likely eliminate their externalities. b. would also eliminate their externalities. c. parties may or may n
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose you are the party who can avoid a particular external effect at the lowest cost. You might favor a general rule that assigns liability to whichever party can avoid damage at the lowest cost because the general rule implies that other parties
multiple choice
a. would not likely eliminate their externalities.
b. would also eliminate their externalities.
c. parties may or may not eliminate their externalities.
d. would pay you to eliminate their externalities.
I know the answer is not a. or c. it has to be either d or b
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