Business, 14.07.2020 01:01, Turtles8276
Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, because the presence of the insects greatly improves flower pollination. Lawyers for the two companies meet to draft a legal document specifying the number of butterflies the farm promises to maintain in exchange for payments by the nursery.
The need for highly paid lawyers to work out a legal agreement between the flower nursery and the butterfly farm contradicts an important requirement of namely, that the parties experiencing an externality must be able to .
Private solutions to externalities do not always work. One of the primary occurrences of this is when parties must spend an excessive amount of time or money to reach an agreement. This describes the problem of .
Answers: 3
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Suppose that a flower nursery benefits from having a butterfly farm located only a few miles away, b...
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