Financial intermediaries develop ________ in things such as computer technology which allows them to lower transactions costs

Which one of the following statements is false?

a. A Pigouvian tax is used to internalize pollution costs b. Transactions costs could reduce the potential for parties in a dispute to reach an efficient agreement c. The assignment of initial property rights affects the equity of a situation d. The "optimal" level of pollution is unlikely to be zero e. The "optimal" level of pollution maximizes industry profits

Cost curves in the long run differ from cost curves in the short run

a. True b. False Indicate whether the statement is true or false