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Answer to Question #71327 in Microeconomics for Lisa
Question #71327
Which type of market failure does the following represent?
(i) Construction of a bowling alley in the center of a busy town.
(ii) Charlie loves watching Sponge Bob on his local TV station but he never sends any money to support the station during its fund raising drives.
(iii) Buying a used appliance on Ebay
(iv) A mango tree in an open lot
(i) Construction of a bowling alley in the center of a busy town.
(ii) Charlie loves watching Sponge Bob on his local TV station but he never sends any money to support the station during its fund raising drives.
(iii) Buying a used appliance on Ebay
(iv) A mango tree in an open lot
Expert's answer
Which type of market failure does the following represent?
(i) Construction of a bowling alley in the center of a busy town is a positive externality.
(ii) Charlie loves watching Sponge Bob on his local TV station but he never sends any money to support the station during its fund raising drives is a free-rider problem.
(iii) Buying a used appliance on Ebay is not a market failure.
(iv) A mango tree in an open lot is a positive externality.
(i) Construction of a bowling alley in the center of a busy town is a positive externality.
(ii) Charlie loves watching Sponge Bob on his local TV station but he never sends any money to support the station during its fund raising drives is a free-rider problem.
(iii) Buying a used appliance on Ebay is not a market failure.
(iv) A mango tree in an open lot is a positive externality.
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Which type of market failure does the following represent? (i) Construction of a bowling alley in the center of a busy town. (ii) Charlie loves watching Sponge Bob on his local TV station but he never sends any money to support the station during its fund raising drives. (iii) Buying a used appliance on Ebay (iv) A mango tree in an open lot
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