Suppose two neighborhoods with 10 homes each in Buffalo, New York are identical except one of them is near a toxic waste dump.

Suppose two neighborhoods with 10 homes each in Buffalo, New York are identical except one of them is near a toxic waste dump. If homes near the dump sell for an average of $40,000 and the other homes sell for $90,000, the external cost of the dump is a. 90,000b 1,300,000c. 400,000d. 900,000e. 500,000

Question:Suppose two neighborhoods with 10 homes each in Buffalo, New York are identical except oneof them is near a toxic waste dump. If homes near the dump sell for an average of $40,000 and...