In which of the following cases is the Coase theorem most likely to solve the externality?
a. Ed is allergic to his roommate's cat.
b. Chemicals from manufacturing plants in the Midwest are causing acid rain in Canada.
c. Polluted water runoff from farms is making residents of a nearby town sick.
d. Industrialization around the world is causing global warming.
a
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Consider the market for medical doctors. Suppose the opportunity cost of going to medical school increases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium quantity of doctors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity.
If an increase in the price of one good causes buyers to demand less of another good, then the two goods are:
A. normal goods. B. inferior goods. C. substitutes. D. complements.
We are given the individual demand curves for all of the people that consume ice cream. Which statement is TRUE about the market demand curve for ice cream?
A) The market demand curve is obtained by horizontally summing the individual demand curves. B) The market demand curve is obtained by vertically summing the individual demand curves. C) The market demand curve cannot be obtained because information on prices is missing. D) The market demand curve cannot be obtained from individual demand curves.
At an output ________ of a firm's short run average total cost curve, a firm can use its fixed capital input at a lower average cost but only by using its variable input at a higher average cost.
A. equal to the highest level B. prior to the minimum point C. beyond the maximum point D. beyond the minimum point