A local drama company proposes a new neighborhood theater, Macroeconomics

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A local drama company proposes a new neighborhood theater

A local drama company proposes a new neighborhood theater in SanFrancisco. Before approving the permit, the city plannercompletes a study of the theater's impact on the surrounding community.

One finding of the study is that theater's attract traffic,which adversely affects the community. The city plannerestimates that the cost to the community from the extra traffic is$5 per ticket. What kind of an externality is this? Why?

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Macroeconomics: A local drama company proposes a new neighborhood theater

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Macroeconomics: A local drama company proposes a new neighborhood theater

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Macroeconomics: A local drama company proposes a new neighborhood theater

Reference No:- TGS0582805

Recent Questions Asked Macroeconomics

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