Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly) . 
-Refer to the information above.The issue of Bob,his neighbours,and the state of his lawn is an example of a(n)
A) positive externality.
B) external cost.
C) negative externality.
D) positional externality.
E) prisoner's dilemma.
Correct Answer:
Verified
Q29: Q30: Bob lives in a residential neighbourhood that Q31: According to Coase,when thinking about solutions to Q32: Private incentives in markets with external benefits Q33: From the perspective of an externality,speed limits Q35: Bob lives in a residential neighbourhood that Q36: Bob lives in a residential neighbourhood that![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents