題組內容

II. 簡答題 (共 10 分)
Lake Union has a polluting firm on its shore. For every toy that the firm produces, it creates some pollution to the lake. The market price for the toy is $100. The private costs of production and the external costs created by pollution are listed in the following table:

d. In reality, residents and the firm cannot costlessly negotiate. List two reasons that why they might not be able to come up a private solution to produce the socially efficient outcome? (2分)