(Table: Benefits and Costs of Lawn Mowing) Answer the following questions.
a. How many times will a self-interested person cut her lawn during the month?
b. What is the socially optimal number of times to mow the lawn?
c. How might lawn cutting generate positive externalities?
d. Besides carrying external marginal costs, suppose that lawn cutting also generates an external marginal benefit of $10. What now is the socially optimal number of times that a lawn should be cut?

Question

(Table: Benefits and Costs of Lawn Mowing) Answer the following questions.  
a. How many times will a self-interested person cut her lawn during the month?
b. What is the socially optimal number of times to mow the lawn?
c. How might lawn cutting generate positive externalities?
d. Besides carrying external marginal costs, suppose that lawn cutting also generates an external marginal benefit of $10. What now is the socially optimal number of times that a lawn should be cut?

Quizplus · Accepted Answer

The Answer of (Table: Benefits and Costs of Lawn Mowing) Answer the following questions.  
a. How many times will a self-interested person cut her lawn during the month?
b. What is the socially optimal number of times to mow the lawn?
c. How might lawn cutting generate positive externalities?
d. Besides carrying external marginal costs, suppose that lawn cutting also generates an external marginal benefit of $10. What now is the socially optimal number of times that a lawn should be cut?

(Table: Benefits and Costs of Lawn Mowing) Answer the Following