According to Yasmin, any student who borrows a book from the university library and fails to return
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According to Yasmin, any student who borrows a book from the university library and fails to return it on time imposes a negative externality on other students. She claims that rather than charging a modest fine for late returns, the library should charge a huge fine so that borrowers will never return a book late. Is Yasmin’s economic reasoning correct?
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Yasmins reasoning is not correct allowing some late returns of books is likely to be socially optima...View the full answer
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