State the Coase theorem
What will be an ideal response?
The Coase theorem states that if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities, regardless of initial assignment of property rights.
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A consumer has maximized her total utility (as measured in money) when, at the quantity of each good chosen
A. marginal utility is negative. B. marginal utility divided by price is equal to 1. C. marginal utility is greater than price. D. marginal utility is equal to total utility.
When a large, well-known corporation wishes to borrow directly from the public, it can
a. sell bonds. b. sell shares of stock. c. go to a bank for a loan. d. All of the above are correct.
When a firm engages in price discrimination, it sets marginal revenue equal to marginal cost for each separate set of consumers.
Answer the following statement true (T) or false (F)
Inheritance accounts for about
A) 5 percent of income inequality. B) 10 percent of income inequality. C) 15 percent of income inequality. D) 30 percent of income inequality.