For each of the following externalities, explain the underlying source of inefficiency (what effects are felt beyond
Question:
For each of the following externalities, explain the underlying source of inefficiency (what effects are felt beyond the decision maker) and suggest a solution that could bring the activity to its efficient level:
a) Billboards along the highway detract from natural beauty.
b) Vaccinations received by domestic animals help wild animals avoid disease because they won't catch the disease from those vaccinated.
c) The use of e-mail communications as a substitute for letters reduces the number of trees harvested for paper production.
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Related Book For
Environmental Economics And Natural Resource Management
ISBN: 9780415640954
4th Edition
Authors: David A. Anderson
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