The Coase theorem states that, in the presence of cost externalities, an optimal equilibrium can be attained
A) with government taxation.
B) by prohibiting production.
C) by correctly defining property rights and through negotiation between the parties.
D) None of the above
C
Economics
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If the price of hamburger meat increases by 20 percent and the quantity supplied by meat packing companies increases by 30 percent, what is the price elasticity of supply?
A) 1.65 B) 1.20 C) 0.67 D) 1.50
Economics
Barometric price leadership exists when
a. one firm in the industry initiates a price change and the others follow it as a signal of changes in cost or demand in the industry. b. one firm imposes its best price on the rest of the industry. c. all firms agree to change prices simultaneously. d. one company forms a price umbrella for all others. e. the firms are all colluding.
Economics