Which of the following are qualifications of the Coase Theorem?
a. technical transaction costs must remain low and be unaffected if liability assignment is reversed
b. both parties must operate in a purely competitive market
c. one party quickly makes an offer the other is just willing to accept only when the information regarding payoffs is complete, certain and known to both parties
d. all of the above are correct
e. only a and c
e
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A decrease in supply will cause
a. an increase in demand. b. a decrease in demand. c. an increase in quantity demanded. d. a decrease in quantity demanded. e. a decrease in equilibrium price.
As the price of flour (an input in the production of cookies) increases, firms that produce cookies will:
A. increase the supply of cookies. B. increase the quantity of cookies supplied. C. decrease the quantity of cookies supplied. D. decrease the supply of cookies.
The president of a college has been told that when they raised their tuition by 15 percent the previous year, total revenue from tuition remained unchanged. Assuming the change in revenue is due to the change in tuition only, the president could conclude that demand for that college, over that tuition range, must be:
A. greater than 1. B. equal to zero. C. equal to 1. D. less than 1.
determinant of a country's current productivity?
What will be an ideal response?