Using the Information in Question 30, What Would Be a Private

question 78

Multiple Choice

Using the information in question 30, what would be a private solution to the above externality?

• A)under the Coase theorem the two companies should be able to negotiate away the externality
• B)the two companies would need to trade permits for river pollution in order to achieve an optimal outcome
• C)the fishing firm could buy the fish-food manufacturing company
• D)the fishing firm should continue to make the most of the positive externality

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Definitions:

Cervical

Relating to the cervix or neck, especially the cervix of the uterus in the context of health.

Basal Ganglia

A group of nuclei in the brain involved in control of voluntary motor movements, procedural learning, routine behaviors or habits, and emotion.

Caudate Nucleus

A brain structure within the basal ganglia involved in various functions including learning, memory, and voluntary movement control.

Putamen

A structure located within the basal ganglia that is involved in regulating movements and influencing various types of learning.