The Coase Theorem states that:
a. bargaining between producers and consumers leads to an efficient outcome when costs are low.
b. bargaining between producers and consumers leads to an efficient outcome when costs are high.
c. property rights should be assigned to the producers causing the externality
d. property rights should be divided between the consumers affected by the externality.
a
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Suppose a firm acts to minimize the cost of producing 500 units of output and determines this cost to be $25,000. Then, if the firm acts to maximize output for a total cost of $25,000, the maximum output attainable is
A) 500. B) less than 500. C) more than 500. D) unknown.
The balance on the current account ____
a. d and e b. c and d c. will show a trade deficit or surplus, if one exists d. must always be zero e. multiplied by ?1 becomes the capital account