Nancy loves to landscape her yard,but her neighbour,Lee,places a low value on his landscaping.When Lee's grass is neglected and gets long,Nancy will mow it for Lee.What is this an example of

Question

Quizplus · Accepted Answer

This is an example of a private solution to a negative externality problem. Lee's neglected grass could be seen as a negative externality, as it could potentially bring down the value of Nancy's yard and her enjoyment of it. By mowing Lee's grass herself, Nancy is essentially internalizing the externality and solving the problem without involving any third-party intervention or government regulation.

Nancy Loves to Landscape Her Yard,but Her Neighbour,Lee,places a Low