Negative Externalities


Question Description:

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Negative Externalities 1 answer below » You should write your answer in readable sentences, but long answers will not help. Submit as a Word document, with single spaced text and default margins, no longer than one page of text. Text beyond the first page will be ignored. You do NOT need to do additional research or calculations. You do NOT need to repeat the case problem or its details in your answer. You do NOT need to put graphs in your answer, although you may use them in thinking about your answer. Document Preview: View complete question » You should write your answer in readable sentences, but long answers will not help. Submit as a Word document, with single spaced text and default margins, no longer than one page of text. Text beyond the first page will be ignored. You do NOT need to do additional research or calculations. You do NOT need to repeat the case problem or its details in your answer. You do NOT need to put graphs in your answer, although you may use them in thinking about your answer. Document Preview: You should write your answer in readable sentences, but long answers will not help. Submit as a Word document, with single spaced text and default margins, no longer than one page of text. Text beyond the first page will be ignored. You do NOT need to do additional research or calculations. You do NOT need to repeat the case problem or its details in your answer. You do NOT need to put graphs in your answer, although you may use them in thinking about your answer.
CASE
A beautiful harbor town has the following characteristics:
It is located on an island that is mostly (except for the town) a nature preservation area, including a coastline and underwater preservation area. The island is owned by a nonprofit foundation established 100 years ago by a wealthy land investor who bought the island from the government at a low price. The foundation’s purpose is to protect the natural environment of the island for future generations to enjoy. It is supported by revenue from rents in the town and fees charged to arriving passengers and ships.
The harbor town’s economy is almost entirely devoted to a thriving tourist trade. All tourists arrive on ferries, yachts, or cruise ships, since there is no commercial airport. The economy consists of restaurants, gift shops, art galleries, hotels, bed-and-breakfast lodgings, and so forth. These businesses lease property from the foundation that owns the island. Visiting ships and yachts must pay a fee to dock or anchor.
One of the harbor’s attractions is an aquarium with an undersea viewing window. Another is a group of passenger-carrying submarines with observation windows. People also rent equipment and lessons in the town to go kayaking and snorkeling in the nearby coastline preservation area.
Although it is a major tourist attraction, the island competes with hundreds of other attractions in the same region. It is more costly to visit than most places because it is so remote and because the foundation charges high rents for… Attachments: PPD501B-2.docx View less » Nov 19 2013 11:46 AM

Answer

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