True/False(please explain)
Organizers of an outdoor concert in a park surrounded by residential neighborhoods are likely to consider the noise and traffic cost to residential neighborhoods when they assess the financial viability of the concert venture.
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Ans: False.
Explanation: Organizers are self-maximizing private agents who do not take into account social costs and benefits. They will consider only private costs and benefits.
This arises the problem of negative externality. In this case, we have:
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True/False(please explain) Organizers of an outdoor concert in a park surrounded by residential neighborhoods are likely...
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