In which of the following externality situations would it be most likely that voluntary agreements could be used to internalize an externality?

Question

Quizplus · Accepted Answer

Of the given options, the situation where trees of one neighbor blocking a view of another is most likely to be resolved through voluntary agreements. This is because it involves a smaller number of individuals and the affected parties may be able to negotiate a solution that benefits both parties. In contrast, the other options involve larger groups with conflicting interests, making it difficult to reach an agreement through voluntary means.

In Which of the Following Externality Situations Would It Be