Suppose two neighbourhoods with 10 homes each in Sydney are identical except one of them is near a toxic waste dump. If homes near the dump sell for an average of $40,000 and the other homes sell for $90,000, the external cost of the dump is
A) $1,300,000.
B) $400,000.
C) $900,000.
D) $90,000.
E) $500,000.

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The Answer of Suppose two neighbourhoods with 10 homes each in Sydney are identical except one of them is near a toxic waste dump. If homes near the dump sell for an average of $40,000 and the other homes sell for $90,000, the external cost of the dump is
A) $1,300,000.
B) $400,000.
C) $900,000.
D) $90,000.
E) $500,000.

Suppose Two Neighbourhoods with 10 Homes Each in Sydney Are