The Coase theorem states that
A) government intervention is always needed if externalities are present.
B) assigning property rights is the only thing the government should do in a market economy.
C) under certain conditions, the property right to an activity will be acquired by the party that values it most.
D) a free-market equilibrium is the best solution to address externalities.
C
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Economists who favor bigness in firms point to which of the following to support their argument?
a. economies of scale b. perfect competition c. need for antitrust d. advantages of marginal cost pricing e. constant returns to scale
Which of the following could explain a decrease in the interest rate and an increase in the equilibrium quantity of investment?
a. the supply of loanable funds shifted right. b. the supply of loanable funds shifted left. c. the demand for loanable funds shifted right. d. the demand for loanable funds shifted left.