Business, 06.05.2020 17:06 keke6361

Montgomery owns a nuclear power plant in the town of Springfield. His power plant dumps substantial quantities of radioactive waste into the local pond, which has mutated the guppy fish population to have three eyes. The town decides to have Montgomery do something about the externality. Which method would NOT result in Montgomery accounting for the social cost of running the power plant?

a)Charge Montgomery $1000 per barrel of toxic waste he produces from the nuclear reactors.

b)Subsidize Montgomery for every three-eyed fish they find in the pond.

c)Clearly defining property rights to indicate that Springfield is the owner of the pond. As the owner, it has the right to compensation from Montgomery for any damages from the pollution.

d)The government gives Montgomery a permit to allow a limited amount of pollution but no more.

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Montgomery owns a nuclear power plant in the town of Springfield. His power plant dumps substantial...

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