If transactions costs are low, then assigning property rights in a market with external costs

i. increases the deadweight loss.
ii. means private transactions are efficient.
iii. means that only consumers must pay the external costs.
A) i only
B) ii only
C) ii and iii
D) i and iii
E) i and ii


B

Economics

You might also like to view...

Which of the following statements concerning external sources of financing for nonfinancial businesses in the United States are TRUE?

A) Stocks are a far more important source of finance than are bonds. B) Stocks and bonds, combined, supply less than one-half of the external funds. C) Financial intermediaries are the least important source of external funds for businesses. D) Since 1970, more than half of the new issues of stock have been sold to American households.

Economics

The costs and benefits of mercantilist policies on the colonies produced a ______ to the American colonies

a. small net benefit b. small net cost c. large net cost d. large net benefit

Economics

According to economist John Taylor, the Fed set its federal funds rate target too high during the period 2002-early 2006, which contributed to the financial crisis of 2007-2009

Indicate whether the statement is true or false

Economics

A monopoly that results from economies of scale is called a(n):

A. large-scale monopolist. B. antitrust violator. C. cost-plus firm. D. natural monopoly.

Economics