Question

Junko's car dealership has been suffering from dust on the cars in its lot ever since Mak opened his bakery nearby. The bakery's flour deliveries send waves of dust down the block. Junko offers to cover half of the cost of Mak adding a shelter for his delivery area to reduce the blowing of flour dust toward the dealership. This is an example of reducing a negative externality through:

Answer 1

"Private bargaining" seems to the appropriate response.

Step-by-step explanation:

• An accidental result of such an operation obtained by a corporate system as well as the agent isn't a respondent to this product or group of products, is termed as Externality.
• Factory pollution would be a detrimental externality as well as the costs are paid by local people. Correspondingly, thick planting supplies the locality with natural ventilation, which is a good externality.

The groups remain private or third-party support until they reached a compromise. Thus the solution seems to be the right one.