Consider the following scenario:
Suppose that a chicken farm uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization successfully lobbies state regulators to stop the farm's pollution.
Which of the following types of private solutions to the externality of pollution has occurred in this case?
__Charities
__Contracts
__Moral codes and social sanctions
__Integration of different types of businesses
It’s important to note that sometimes private solutions to externalities do not work. For example, this occurs when an excessive amount of time or money must be spent for parties to reach an agreement. This describes the problem of _____ (Choices: A breakdown in bargaining, Transaction costs, Property held in common)