externality, Microeconomics

When somebody wearing muddy shoes rides a public bus, he imposes a negative externality on other riders (passengers get some mud rubbed off on them, and the shoes look ugly). If a city council asked you to recommend some kind of a solution for this externality, would you suggest a tax, assigning property rights, regulation, or doing nothing? Why?
Posted Date: 11/26/2012 9:09:11 PM | Location : Canada







Related Discussions:- externality, Assignment Help, Ask Question on externality, Get Answer, Expert's Help, externality Discussions

Write discussion on externality
Your posts are moderated
Related Questions
Low standards of living: In developing nations general standards of living tend to be very low for the vast majority of the people. These low standards of living are manifest


Identify path of growth and development to economic maturity.

Why is human capital so important in the development process? Explain human capital in terms of (the sum of) education/training/experience/ literacy etc, and clearly show how t


Suppose one were asked to recommend a price for the output of a proposed downtown parking garage, so that the project would have as large a Net Present Value as possible.  In this

A spherical wave is reflected from a planar mirror sufficiently far from the wave origin so that the Fresnel approximation is satisfied. By regarding the spherical wave locally as

What is meant by minimum wage?  The minimum wage is the minimum rate a worker can legally be paid (usually per hour) as opposed to wages that are examined by the forces of sup

Economic Cycle The economic cycle is the long-standing sample of alternating times of economic growth (expansion) and decline (recession), followed by changing economic indica

THEORY OF COSUMER  BEHAVIOUR: BASIC THEMES: We elaborated two classical theories (viz. Cardinal Approach and Ordinal Approach). In ordinal approach discussing the indifference