Question

Your neighbor John has a barking dog.Which of the following statements is​ true?A.It does not create any externalities because you do not own the dog.B.It does not create any externality because John bought the dog from a shelter.C.It can create negative externalities by disrupting your sleep and can also create positive externalities by discouraging intruders.D.It creates only a negative externality by disrupting your sleep.

Answer 1

C.

It can create negative externalities by disrupting your sleep and can also create positive externalities by discouraging intruders.