low and economic

discuss the following:

Do you think fireworks would be considered a positive externality, a negative externality, or both?

Would the Coase Theorem work in the case of fireworks? Why or why not?

If the Coase Theorem wouldn’t work, what other solutions would there be?

Please make one original post by midnight on Thursday, May 14th.

Please make one post in response to another student’s post by midnight on Sunday, May 17th.

EXAMPLE OF ONE OF THE STUDENT DISCUSSIONS,

Fireworks would be both, depending on location . If for instance my neighbor is letting off fireworks in the common area of my neighborhood myself my family and a few neighbors are outside celebrating and the fireworks enhance our celebration the fireworks and then a positive externality . However as the other neighbor is attempting to sleep , watch TV, read or perhaps their dog is barking in the fireworks negative externality. Coase theorem will work in this situation because the neighbors can come to an efficient solution with no trans action cost, by agreeing to set the fireworks at a given time .

On the other hand if the fireworks were being set off by a city or municipal state park which is surrounded by homes depending on the homeowners interest a positive externality exist because the homeowner has the best seat in the house . A negative externality would exist if the homeowners yards were being used by spectators without homeowners permission . In this case Coase therem will not work.

Place this order with us and get 18% discount now! to earn your discount enter this code:special18If you need assistance chat with us now by clicking the live chat

button