Which of the following statements is consistent with the Coase theorem?
A. In the case of zero transaction costs, a property rights assignment (made by a court) will be undone if it benefits the relevant parties to undo it.
B. In the case of zero transaction costs, the resource allocative outcome will be the same no matter who is assigned the property right.
C. Taxes can do what property rights assignments cannot.
D. The market can solve all negative externality problems.
E. a and b
Answer: E
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If short-term government bond rates were indexed
A) such bonds would be a poor hedge against inflation. B) banks and saving and loan institutions would likely lose deposits. C) the government would gain from the implied inflation tax. D) the government would gain from the implied inflation subsidy.
The Sherman Antitrust Act of 1890 is the federal antitrust law that prohibits:
a. monopolization and conspiracies to restrain trade. b. mergers the substantially lessen competition. c. exclusive dealing, tying contracts, and interlocking directorates. d. unfair methods of competition in commerce.
Information that is NOT available to the general public about what is happening in a corporation is
A) opportunity benefit. B) limited liability. C) economic rent. D) inside information.
What do we mean by efficient production?
What will be an ideal response?