If I neglect or refuse to cut the grass on my front lawn, what are the externalities involved?
Suggest two ways the government might deal with this issue.
- OiyLv 610 months agoFavorite Answer
It will be negative externalities because it has damaged the beautiful neighborhood. In this case, your marginal private cost of not cutting the lawn will be smaller than the marginal social cost of the community. The government or community can do two things. First thing first is to raise a Pigouvian tax or a fine. Secondly, to impose the regulation, if you don't do you die.
- thesunLv 610 months ago
Just tell them you've got depression...
- KennyLv 710 months ago
A fine or cut your lawn and put a lean against your property covering the cost .