The disagreement between A. C. Pigou and Ronald Coase arose because
A. Pigou argued that the government should ban all externality-generating activities, while Coase thought that taxes and subsidies should be used instead.
B. Coase argued that the government should ban all externality-generating activities, while Pigou thought that taxes and subsidies should be used instead.
C. Pigou argued that the government should use taxes and subsidies to adjust for externalities, while Coase proposed a market solution to the externality problem.
D. Coase argued that the government should use taxes and subsidies to adjust for externalities, while Pigou proposed a market solution to the externality problem.
Answer: C
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True, false, or uncertain? Any firm that is not covering fixed costs should shut down in the short run
Indicate whether the statement is true or false