Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Watch the video -Bitter Wine( https://criticalcommons.org/view?m=HTLGKYQN3 ) and respond to the following questions. Following Paladin's discussion withGorman, what is theexternalitypresented here? In other words, who

Watch the video -"Bitter Wine"(https://criticalcommons.org/view?m=HTLGKYQN3) and respond to the following questions.

  1. Following Paladin's discussion withGorman, what is theexternalitypresented here? In other words, who is "at fault?" (watch carefully leading up to the 10:02 minute mark).
  2. Why does Paladin suggest building a sump and smoke stack to carry the pollution away (9:39-9:45)? If the pollution is theexternality, does this not solve the problem?
  3. Why does Paladin suggestGormantake action to prevent theexternalityas opposed to Donatello? What does this suggest about the initial property rights allocation by Paladin?
  4. When Paladin returns to Donatello and proposes Donatello loanGorman$3,000,what is Donatello's reaction?
  5. Paladin fairly quickly finds a mutually beneficial solution to the problem of "bitter wine." Whydidn'tGormanand Donatello reach this same conclusion? What are the barriers (ie, transaction costs) that prevent this solution from arising without Paladin?
  6. Why does Paladin need to go to see a lawyer in Stockton? What role is this unseen lawyer playing? .
  7. Even after Paladin lulls the guards to sleep and getsGormanand Donatello face to face, Donatello still refuses to negotiate, preferring to see Paladin start an oil fire. Paladin explains the effects of the fire would not be confined toGorman, but to Donatello as well. How does Paladin's explanation change the situation (hint: estimated costs/benefits versus actual costs/benefits). .
  8. As you think about COVID-19and the stay at home orders along with the video and questions from Bitter Wine,how do we see the same thing in the arguments about continuing to stay at home versus getting businesses re-opened?That is,how have the"property rights"been assigned since the middle/end of March and what is theexternalityassociated with doing so? What is theexternalityassociated with opening the economy back up? How are property rights being changed with the lifting of the stay at home orders? How does looking at it this way help explain why some are in favor of a change while others want to maintain the status quo?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Democracy And Public Administration

Authors: Richard C Box

1st Edition

1317473213, 9781317473213

More Books

Students also viewed these Economics questions