SQ3_ExternalitiesAK(1)

F should it matter to an economist who is only

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Unformatted text preview: tlessly negotiate with each other, then what will be the likely outcome? That is, will The Lakeside Café dump their garbage into the lake? d. How might this agreement be reached if The Lakeside Café has the right to dump garbage into the lake? e. How might this agreement be reached if Camp Canoe has the right to decide whether The Lakeside Café can dump garbage into the lake? f. Should it matter to an economist who is only interested in economic efficiency whether The Lakeside Café has the right to dump garbage or whether Camp Canoe has the right to stop The Lakeside Café from dumping garbage? Explain. g. Should it matter to Camp Canoe whether The Lakeside Café has the right to dump garbage or whether Camp Canoe has the right to stop The Lakeside Café from dumping garbage? Explain. a. No because total surplus is maximiz...
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This note was uploaded on 02/13/2014 for the course ECON 2 taught by Professor Kim during the Winter '08 term at UCSD.

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