A small firm burning compost to produce energy opens next to an urban farm in London. The firm emits greenhouse gases that compromise the health of the farm animals. The firm' owners interact regularly with the urban farm's owners. Without any government ntervention do you expect the firm and the urban farm to produce a socially efficient putput? Is there an externality? Select one: O a. The output will not be efficient because the urban farm will produce more than optimal; there is an externality caused by the firm. o b. The output will not be efficient because the firm will produce less than optimal; there is an externality caused by the firm. O c. The output will not be efficient because the firm will produce more than optimal; there is an externality caused by the firm. o d. The output will not be efficient because the urban farm will produce less than optimal; there is no externality.
A small firm burning compost to produce energy opens next to an urban farm in London. The firm emits greenhouse gases that compromise the health of the farm animals. The firm' owners interact regularly with the urban farm's owners. Without any government ntervention do you expect the firm and the urban farm to produce a socially efficient putput? Is there an externality? Select one: O a. The output will not be efficient because the urban farm will produce more than optimal; there is an externality caused by the firm. o b. The output will not be efficient because the firm will produce less than optimal; there is an externality caused by the firm. O c. The output will not be efficient because the firm will produce more than optimal; there is an externality caused by the firm. o d. The output will not be efficient because the urban farm will produce less than optimal; there is no externality.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter13: Positive Externalities And Public Goods
Section: Chapter Questions
Problem 24P: Assume that the marginal private costs of a film producing fuel-efficient can; is greater than the...
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