In the case in Scenario 18.1, the Coase theorem specifies that
A) the result will be different if the fishermen are given the right to clean water than it will be if the factory is given the right to use the water as it sees fit, but the result will be inefficient in either case.
B) the efficient result will occur whether the fishermen are given the right to clean water or the factory is given the right to use the water as it sees fit.
C) economic efficiency requires that the fishermen be given the right to clean water.
D) economic efficiency requires that no one may contaminate the water.
E) economic efficiency requires that the fishermen be given the right to clean water and that the factory be given the right to use the water as it sees fit.
B
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In the long run, in a price-taker market, the price of a good is determined primarily by the
a. average total cost of producing it. b. decision of buyers in determining how much they are willing to pay for the good. c. elasticity of supply. d. number of firms in the industry.
A(n) ________ in inflationary expectations that causes firms to decrease their prices shifts the aggregate supply curve to the ________.
A. decrease; right B. increase; right C. increase; left D. decrease; left