List and briefly describe the four major types of transactions costs involved when dealing with a negative externality

What will be an ideal response?

Search costs are the costs of determining who to bargain with.
Collectivization costs are the costs of organizing all the affected parties so that bargaining can take place.
Negotiation costs are the costs of the actual bargaining process.
Monitoring and enforcement costs are the costs of ensuring that the parties live up to the promises they made in bargaining.

Economics

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The table above shows the payoff matrix for a prisoners' dilemma. In the Nash equilibrium

A) both prisoners get 3 years in jail. B) both prisoners get 2 years in jail. C) both prisoners get 1 year in jail. D) both prisoners get 10 years in jail.

Economics

Refer to Table 19-18. What is the GDP deflator in 2011 if 2016 is the base year?

A) 187 B) 87 C) 8.7 D) 0.87

Economics