Transactions costs are the
A) costs of using the Coase theorem.
B) opportunity costs of conducting a transaction.
C) external marginal costs of the externality.
D) reason why taxes cannot affect the inefficiency resulting from an external cost.
E) external costs when a firm pollutes.
B
You might also like to view...
When a firm is no longer able to reduce its long-run average cost by expanding, it has achieved its minimum efficient scale of production
a. True b. False
"Ceteris paribus" is a Latin expression that essentially means "holding everything else constant."
a. True b. False Indicate whether the statement is true or false
Compared to most other industrialized nations, the United States has greater income inequality
a. True b. False Indicate whether the statement is true or false
If the stock market falls by 25 percent next year and remains down, what is most likely to happen to the consumption function?
a. It will shift upward. b. It will shift downward. c. It will not shift, but people will move downward along the consumption function. d. It will not shift, but people will move upward along the consumption function.