(Table: Benefits and Costs of Lawn Mowing) Answer the Following

question 38

Essay

(Table: Benefits and Costs of Lawn Mowing) Answer the following questions.
a. How many times will a self-interested person cut her lawn during the month?
b. What is the socially optimal number of times to mow the lawn?
c. How might lawn cutting generate positive externalities?
d. Besides carrying external marginal costs, suppose that lawn cutting also generates an external marginal benefit of $10. What now is the socially optimal number of times that a lawn should be cut?

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Definitions:

Power

The potential or ability to influence decisions and control resources.

Coalition

A specific arrangement of parties working together to combine their power.

Corporate Culture

The set of beliefs, values, norms, and practices that defines the way a company operates and how its employees interact.

Punishment System

A set of rules and procedures designed to discipline individuals or groups for violating norms or policies.