Suppose that Hilary has just finished smoking a cigarette and is thinking about throwing the cigarette butt onto her neighbor Edison's driveway. Although no police officers are around, she instead decides to carry it to a trash can because she doesn't want to embarrass herself by letting people see her littering.

Which of the following types of private solutions to the externality of littering has occurred in this case?

a)

Contracts

b)

Integration of different types of businesses through merger or acquisition

c)

Charities

d)

Moral codes and social sanctions

D.Moral codes and social sanctions

Explanation:

Hilary smoked a cigarette and she thought of throwing the cigarette butt onto her neighbor Edison's driveway. She decides to carry it to a trash can because she doesn't want to embarrass herself by letting people see her littering.

Asides from not wanting to embarrass herself , the private solutions to the externality of this action of changing her mind to trash the cigarette butt is also by knowing that littering the environment is morally wrong and defaulting will lead to some form of punishment or fine.

a. $48.75

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