A motorist with a noisy muffler will continue to drive around town,creating noise pollution wherever he goes,as long as
A) the cost to him is less than the benefit he derives from it.
B) there is no cost to the other people in the town.
C) there is an economic benefit to the society.
D) there are by-laws against noise pollution.
E) he considers the noise a positive externality.

Question

Quizplus · Accepted Answer

The motorist will continue to drive with a noisy muffler as long as the cost to him (in potential fines or repairs) is less than the benefit he derives from it (such as feeling a sense of power or enjoying the sound).

A Motorist with a Noisy Muffler Will Continue to Drive