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Which of the following actions is likely to create an external benefit: A
Which of the following actions is likely to create an external benefit:
A. Producing steel
B. Fertilizing and manicuring a lawn in a suburban neighborhood
C. Smoking in a crowded room
D. Speaking on a cell phone in a class room
Expert Solution
The correct answer is (B). Fertilizing and manicuring a lawn in a suburban neighborhood.
Fertilizing and manicuring a lawn is a beautification process that create a nice and neat environment. This prevent mosquitoes and other small rodents to find safe breeding grounds. Producing steel pollute the environment which causes external cost.
Smoking in a crowded room causes air pollution which disturbs nonsmoker's. Speaking on a cellphone while in class causes noise which distract other students.
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