Suppose That Martin Owns a Lighthouse and Lewis Owns a Nearby

question 27

Multiple Choice

Suppose that Martin owns a lighthouse and Lewis owns a nearby port.Martin's lighthouse benefits only those ships that enter Lewis's port.What is the preferred method to combat the free-rider problem

• A)Martin charges a fee for all ships that pass by Lewis's port.
• B)Martin charges Lewis a usage fee.
• C)Martin can exclude Lewis's port from benefiting from the lighthouse by simply turning the power off.
• D)Martin sells his lighthouse.

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Definitions:

Endoderm

One of the three primary germ layers in the early embryo that develops into the interior linings of the digestive system and the respiratory system.

Cells

The basic structural, functional, and biological units of all known living organisms, acting as the building blocks of life.

Ectoderm

The outermost layer of cells in the early embryo from which the skin, nervous system, and sensory organs develop.

Embryonic Development

The process during which an embryo forms and develops, starting from fertilization to the fetal stage.