Suppose that a cafe enjoys a large increase in customers whenever the jazz club next door features a band playing appealing music, because it can be easily heard from the cafe. The jazz club owner decides to purchase the cafe so that he can internalize this positive externality.

The answer is "Option 2".

Explanation:

please find the complete question in the attached file.

When a person does have an advantage for many other people’s perspectives, the additional factor is optimistic. The jazz club manager decides to purchase the cafe so that he can truly understand it. It can be accomplished through the integration of various business types. It a single individual formulates from of the situation Strong exogenous shock through the convergence of multiple business forms.

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