Question: Green Pastures Apartments wants to build a playground to increase demand for its larger-sized apartments but is worried that it will be overcrowded with tenants from the Still Waters Mobile Estates and Twin Pines Townhomes developments nearby.
a. What type of externality is the playground: external cost or external benefit?
b. What type of compromise might Green Pastures be able to make with Still Waters and Twin Pines so that all three developments will benefit from the playground? More than one answer is possible, but give just one based on reasoning from this chapter.