When a Particular Negative Externality Affects a Very Large Number

question 171

Multiple Choice

When a particular negative externality affects a very large number of people, it is likely that

• A)government will not find it worthwhile to impose a corrective tax.
• B)private solutions to the problem will dominate any attempt by government to alleviate the problem.
• C)the solution to externalities suggested by the Coase theorem will work very well.
• D)the solution to externalities suggested by the Coase theorem will not work.

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Definitions:

Northwest Corner Allocation

The Northwest Corner Allocation is a method used in operations research for finding an initial feasible solution to a transportation problem by starting at the northwest corner of a cost matrix and allocating supplies to demands stepwise.

Source 1-Destination 1

Represents a simplified notation for mapping a specific source to a specific destination, often used in logistics and data flow diagrams.

Problem Data Set

A collection of data or information that relates to a particular problem or challenge to be analyzed or solved.

Northwest-corner Rule

A method used in transportation problem solutions in operations research, starting allocation from the northwest corner of a cost matrix and moving through the matrix to minimize costs.