The Coase Theorem does not imply which of the following?
a. Resources will be allocated efficiently in the absence of transactions costs.
b. Resources will move to their highest valued use in there are no transactions costs.
c. The initial allocation of property rights does not matter to the parties involved.
d. The allocation of resources is independent of the assignment of property rights if transactions costs are zero.
c
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During the Great Depression, many industrial countries tried protecting domestic jobs by raising tariffs. Economic theory would suggest that the result would be
A) success for only the countries that raised tariffs first. B) success for firms that had a comparative advantage in manufactured goods rather than agricultural goods. C) reduced exports and volume of trade for everyone. D) increased incomes in the countries that pursued this policy.
When we derive the demand curve for a good, we should remember that the
a. income effect must be greater than the substitution effect. b. substitution effect must be greater than the income effect. c. substitution effect must be in the same direction as the income effect. d. income effect and the substitution effect may work in the same or in opposite directions.
Refer to the above graph. To maximize profits, the firm should produce the quantity:
a. 0C b. 0A c. 0K d. 0B
The StubHub's secondary baseball ticket market is an attempt by the league
A. to extend its monopoly in the primary ticket market to the secondary market. B. to appear to charge lower ticket prices while effectively charging higher prices. C. to capture profits made in the secondary market. D. all of these.