Question

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 by the minerals in the waste matter. the local office of a nonprofit environmental organization collects enough donations to fund a campaign to stop the farm's pollution. which of the following private solutions resolving the externality of pollution took place in this scenario?

A. The chicken farm voluntarily implemented waste treatment measures to reduce the pollution.
B. The local government imposed fines on the chicken farm for environmental violations.
C. The nonprofit environmental organization organized a fundraising campaign to address the pollution.
D. The lake community started a petition to raise awareness about the pollution issue.

Answer 1

The private solution to the pollution externality was the campaign organized by the nonprofit environmental organization, which aimed to address the negative impacts of the chicken farm's waste disposal.

Step-by-step explanation:

In the scenario provided, the private solution to the externality of pollution was the fundraising campaign organized by the nonprofit environmental organization. This initiative represents a private effort to address the negative externalities caused by the chicken farm's waste disposal. The scenario does not mention any voluntary actions on the part of the chicken farm, nor any government interventions such as fines or regulations. Instead, it showcases how a community-driven organization took steps to rectify the external costs imposed on society by the farm’s pollution. This type of solution is essential in situations where there might not be adequate governmental structures or regulations to handle such pollution issues.