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Business, 04.04.2020 08:27 Jaylen52709

Suppose that a cafe enjoys a large increase in customers whenever the jazz club next door features a band playing appealing music because it can be easily heard from the cafe. The jazz club owner decides to purchase the cafe so that he can internalize this positive externality. Which of the following types of private solutions to the externality of appealing music has occurred in this case?
a. Contracts
b. Charities
c. Moral codes and social sanctions
d. Integration of different types of businesses through merger or acquisition

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