The Coase Theorem states that _____
a. in the absence of transactions costs, the allocation of resource will be independent of property right assignment
b. in the absence of transactions costs, the allocation of resources will be dependent on property right assignment
c. with transactions costs, the allocation of resources will be independent of property right assignment
d. with transactions costs, the allocation of resources will be dependent of property right assignment
a
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Firm A is a monopoly because of network effects, whereas Firm B is a natural monopoly. Which of the following statements is likely to be true in this context?
A) The average total costs of both firms decrease as they increase their output. B) The value of the product that both firms produce increases with an increase in the number of buyers. C) Firm A enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm B enjoys a monopoly status because the value of its product increases as more consumers buy it. D) Firm B enjoys a monopoly status because its average total cost decreases with increase in output, whereas Firm A enjoys a monopoly status because the value of its product increases as more consumers buy it.
The demand for a resource is “derived” from the goods and services that the resource is used to produce. Give three examples
Please provide the best answer for the statement.