Dr Nick

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About Dr Nick

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

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Art & Design,Computer Science See all
Art & Design,Computer Science,Engineering,Information Systems,Programming Hide all
Teaching Since: May 2017
Last Sign in: 339 Weeks Ago, 6 Days Ago
Questions Answered: 19234
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Education

  • MBA (IT), PHD
    Kaplan University
    Apr-2009 - Mar-2014

Experience

  • Professor
    University of Santo Tomas
    Aug-2006 - Present

Category > Economics Posted 29 Aug 2017 My Price 10.00

impose a tax on Betty to compensate Carl

Watch this video:

https://youtu.be/ljrBEdg-QU4

In it, you'll see that one way to correct the externality is by Betty giving Carl some chips.

The video suggests that Carl is harmed by Betty's crunching; were we to stop Betty's crunching completely, that would help Carl. Would it impose any harm on Betty? If so, what solutions could we devise to compensate Betty?

It seems as if there is only one solution: impose a tax on Betty to compensate Carl. We might, though, consider alternative arrangements that result in Betty and Carl feeling satisfied besides taxing Betty (in fact, one possibility is to tax Carl). Can you think of some alternative solutions?

 

Answers

Dr Nick
(4)
Status NEW Posted 29 Aug 2017 03:08 AM My Price 10.00

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