Suppose a large tree on Adam's property blocks Eve's view of the ocean. Adam accepts Eve's offer of $15,000 to cut down the tree. This is an example of

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Quizplus · Accepted Answer

This is an example of internalizing externalities via voluntary agreements, as Adam and Eve have come to a private agreement in which the negative externality (blocked view) is internalized and compensated for by Adam.

Suppose a Large Tree on Adam's Property Blocks Eve's View