What important function does adjudication perform in the process of reducing negative externalities?
A) It allocates the revenue from negative externalities to the people who have been damaged.
B) It arbitrates between beneficiaries of negative externalities and the people who must bear their costs.
C) It decides whether punitive or merely compensatory damages will be awarded.
D) It discovers who has which rights.
E) It imposes criminal penalties on the people responsible for generating negative externalities.
D
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Can a perfectly competitive firm successfully price discriminate? Hint: What does the demand curve look like for a perfectly competitive firm?
What will be an ideal response?
An industry which has no barriers to entry, no product-promotion strategy, a standardized product, and a very large number of firms operating within it, is said to have:
a. a monopoly market structure. b. perfect competition. c. monopsonistic competition. d. monopolistic competition. e. an oligopoly market structure.