econ homework 3

econ homework 3 - The reason why it is this is because...

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Rebecca Shindell ECON 002 2-25-09 Homework # 3 (1) When a third party is adversely affected by the actions of others this is referred to as a negative externality. (2) This is an example of an inframarginal externality because even though the lawnmowers are noisy, it’s only disrupting few neighbors and it’s benefitting the rest of the neighborhood. The Coase Theorem does not apply here. (3) Education is an impure public good.
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Unformatted text preview: The reason why it is this is because it’s a non-rival in consumption, meaning that everyone can listen to their teacher at the same time, yet it’s excludable because students can be required to pay tuition before they can attend, such as college or a private school. (4) 100 commuters should take each route so that the trip time is equal no matter which way they go....
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