The Coase theorem suggests that private solutions to an externality problem
a. are effective under all conditions.
b. will usually allocate resources efficiently if private parties can bargain without cost.
c. are only efficient when there are negative externalities.
d. may not be possible because of the distribution of property rights.
b
Economics
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Capital goods are
A) a type of intermediate good. B) final goods, because they are not used up during a given year. C) produced in the same year as the related final good, whereas intermediate goods are produced in different years. D) produced in one year, whereas final goods are produced over a period of more than one year.
Economics
Cross-price elasticity is used to determine whether goods are inferior or normal goods
a. True b. False Indicate whether the statement is true or false
Economics