Consider Two Neighbors Who Each Run a Small Business

question 106

Multiple Choice

Consider two neighbors who each run a small business. Juan grows and sells vegetables. Amber grows and sells flowers. Currently, Juan uses a herbicide on his vegetables, because he can grow more crops with the use of herbicide. Specifically, he earns $1,500 more during the years when he uses herbicide. Amber's flower farm is harmed by Juan's use of herbicide because it drifts to her farm and kills $3,000 worth of flowers each year. Which would be an efficient solution to this problem?

• A) The government bans the use of herbicide.
• B) Amber sells her flower business.
• C) Amber pays Juan $1,500 not to use a herbicide.
• D) There is no need for an intervention, as the current situation is efficient.

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Definitions:

Copper Wire

A conductive wire made from copper, commonly used in electrical wiring due to its high conductivity and flexibility.

Rosin Core

A type of solder with a core of rosin flux, used in electrical soldering to improve the solder's adhesion and electrical conductivity.

Silver Solder

An alloy used in soldering that contains silver, providing stronger joints compared to traditional solder due to its higher melting point.

Fluorescent Lights

A type of lighting that utilizes a phosphor coating inside a glass tube to produce light when an electric current causes a gas in the tube to glow.