Questionn 1 classify the items in the following list as, Ask an Expert

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Questionn: 1. Classify the items in the following list as markets, private externalities, or public externalities.

a. A lighthouse warns ships about rocks.

b. My building blocks your sunlight.

c. You outbid me at the auction.

d. Bees pollinate your apple trees.

e. Noise lowers the sale value of my house.

2. Assume that the third good, x3, represents miles driven in cars by persons 1, 2, 3, . . . , n, and assume that cars are polluting. Rewrite the utility function of person j in the preceding formulation to represent these facts.

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Management Theories, Management Studies

Category:- Management Theories
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