When CSU Sophomore Cody Clow and His Housemates Chose Not

question 373

Multiple Choice

When CSU sophomore Cody Clow and his housemates chose not to heed the city's ordinance against unreasonable noise and host a loud party at their off-campus residence last fall, they were confronted and ticketed by police. Fort Collins city code describes unreasonable noise as any sound that will "unreasonably interfere with the enjoyment of life or property." What is TRUE about this situation?

• A) Marginal external costs are positive.
• B) Marginal external costs are negative.
• C) Marginal external benefits are positive.
• D) Marginal external benefits are negative.

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Definitions:

Nonpaid Labor

Work that does not receive financial compensation, often seen in domestic tasks, volunteer work, or internship experiences.

Marginal Utility

The supplementary value or utility derived from the consumption of one more unit of a good or service.

Market Price

The existing value at which an asset or service could be sold or bought.

Consumption

The usage of goods and services by households.