Because of the free rider problem
a. side payments are necessary in order to achieve an efficient outcome
b. a needed side payment can shrink until it is not large enough to compensate losers and still leave gainers better off
c. efficient outcomes can never be achieved
d. the Coase Theory often applies to real-world situations
e. externalities are less common than they would otherwise be
B
You might also like to view...
Al B. Core works at a Fresh Fish Market. The market sells fresh fish from 9 a.m. until 7 p.m. every day. The store does not sell day-old fish, so all unsold fish are thrown away at 7 p.m. each day. If Al has lots of fresh fish left at the end of the day that cost him $300 to acquire, what should Al do? a. Lower the price of the remaining fish, even if he can't recover his $300
b. Lower the price of the remaining fish, but under no circumstances should the price fall below $300 for the remaining fish. c. Throw the fish away even if he could sell some of them at a discounted price. d. Starting tomorrow, lower the price on all fish so they will all be sold by mid-day.
China's pattern of economic growth can be characterized as:
a. Slow b. Labor growing rapidly relative to capital c. Rising capital labor ratios d. Rapid growth of capital e. Both c and d