Increasing environmental awareness in the United States has occurred with increasing GDP, which has reduced concerns about basic needs

Which of the following is an implication of the Coase Theorem?

A) Bargaining cannot lead to an efficient allocation of resources. B) Government intervention is not always necessary to solve externality problems. C) Negotiation leads to an efficient outcome if transaction costs are high. D) Taxation leads to an efficient allocation of resources regardless of who holds the property rights.

Firms in perfect competition are price takers because

A) each firm is too small relative to the market to be able to influence price. B) one firm determines the price that all other firms in the industry will charge. C) firms accept the price determined by the government. D) consumers have enough market power to set prices.