According to the Coase approach, to achieve socially optimal outcome, two sides must bargain. The bargaining might not be successful because
A) transaction costs are ignorable.
B) firms engage in strategic bargaining.
C) both sides have perfect information.
D) None of the above.
B
Economics
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The main idea behind supply-side tax cuts is that
a. tax cuts increase spending, which increases aggregate supply. b. some tax cuts can increase aggregate supply. c. people like lower taxes and will spend more if they get them. d. it is easier to shift aggregate supply than aggregate demand.
Economics
As you move up the production possibility frontier, the absolute value of the marginal rate of transformation
A. initially decreases, then increases. B. increases. C. initially increases, then decreases. D. decreases.
Economics