Suppose that a fish-food manufacturing company is located up the river from a fishing firm and often releases some of the food into the river.This means:
A) the fish food manufacturing company is imposing a negative externality on the fishing firm
B) the fish food manufacturing company is imposing a positive externality on the fishing firm
C) under the Coase theorem the two companies should be able to negotiate away the externality
D) unless the government imposes a tax on river pollution, the fishing firm will continue to be negatively impacted by the fish-food manufacturing company
Correct Answer:
Verified
Q64: Graph 10-1 Q65: Jack loves surfing but prefers to go Q66: At any given quantity, the willingness to Q67: To produce honey, beekeepers place hives of Q68: Using the information in question 30, what![]()
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