Business, 21.05.2020 00:04 20jessicar598
Suppose that an airport is built right next to an apartment complex. The airport causes an externality to the apartment renters/owners because the airport is very loud. The airport could purchase a noise canceling device in order to eliminate the noise. The device costs $1,000,000. Suppose the apartment renters /owners have the right, by law, to compensation for the disturbance. Suppose there are 1000 renters/owners living in that apartment complex and the cost for the noise to each person is $100,000. Assume that there are no transaction costs. What is the purpose of assuming there are no transaction costs?
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Suppose that an airport is built right next to an apartment complex. The airport causes an externali...
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