Dick has a dog (Spot) that likes to bark at night. Jane, who lives next door to Dick, must be at work every morning by six o'clock. Suppose that there is no noise ordinance that requires Dick to keep his dog quiet
Is there any Coase solution to this problem? Explain.
Since Jane has no right to expect the dog to remain quiet (and Dick has a right to have a dog), Jane could pay Dick to either get rid of the dog or to keep the dog indoors during the night.
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In the one-period valuation model, an increase in the required return on investments in equity
A) increases the expected sales price of a stock. B) increases the current price of a stock. C) reduces the expected sales price of a stock. D) reduces the current price of a stock.
A strength of the market economy is that:
A. it results in an equal distribution of wealth. B. resources are used efficiently. C. planners rather than consumers determine answers to the basic economic questions. D. information for production and distribution decisions passes directly from the government to buyers.