When the number of parties involved in the transaction is small, Coase's solution of assigning property rights may not be enough

The classical theory was developed in the late 18th and early 19th centuries

A) and cannot be explained using the modern tool of the productivity function. B) and therefore is not accepted today. C) and still applies to the most developed nations today, though not to the less developed nations. D) and has proponents today who fear population growth and overpopulation. E) during a time of population decline.

If the demand curve a monopolist faces is perfectly elastic, then the ratio of the firm's price to the marginal cost is

A) 0. B) 1. C) 2. D) None of the above—the answer cannot be determined.