In which of these situations would the Coase theorem be MOST likely to work?
A) A thousand firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean.
B) A group of nine firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean.
C) Worldwide deep sea fishing rights need to be negotiated among thousands of fishermen from different countries.
D) One hundred and fifty nations need to come to an accord about CFC generation to combat ozone depletion.
E) A group of chemical firms high upstream on the Mississippi River have emissions that affect not only communities downstream along the river, but around the Gulf of Mexico as well.
B
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The law of diminishing marginal utility is the reason for upward sloping supply curves
a. True b. False Indicate whether the statement is true or false
One major advantage of credit cards used for transactions is that they:
A. Offer discounts on most transactions B. Charge a lower interest rate than other means of payment C. Give consumers the lowest prices on products purchased D. Allow consumers to coordinate timing and payment for purchases