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Business, 17.03.2020 16:38 armon6720

Private solutions to correct for externalities Consider the following scenario: Suppose that a cafe enjoys a large increase in customers whenever the jazz club next door features a band playing appealing music, because it can be easily heard from the cafe. The jazz club owner decides to purchase the cafe so that he can internalize this positive externality. Which of the following types of private solutions to the externality of appealing music has occurred in this case? It's important to note that sometimes private solutions to externalities do communications barriers or social customs are important enough relative to the potential gains involved that

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Private solutions to correct for externalities Consider the following scenario: Suppose that a cafe...

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