A bond's coupon payment divided by the bond's ________ is equal to the bond's current yield

Economist A.C. Pigou argued that to deal with a negative externality in production, the government should impose a tax equal to the cost of the externality

What did Pigou believe should be done in the case of a positive externality in consumption? How would his recommendation impact the demand and market equilibrium for the product which is generating the positive externality?

The De Beers Company, one of the longest-lived monopolies, is facing increasing competition. One source of competition comes from people who might resell their previously owned diamonds

Why is De Beers worried that people might resell their previously owned diamonds? A) because the availability of previously owned diamonds would make the market demand curve for diamonds more inelastic and force De Beers to lower its price B) because previously owned diamonds would be a close substitute to newly mined diamonds and therefore reduce De Beers' market power C) because the availability of previously owned diamonds would increase the market demand for diamonds and dilute De Beers' monopoly D) because De Beers will not be able to guarantee the quality of previously owned diamonds and fears that its reputation might be harmed