If transactions costs are low, then assigning property rights in a market with external costs
i. increases the deadweight loss.
ii. means private transactions are efficient.
iii. means that only consumers must pay the external costs.
A) i only
B) ii only
C) ii and iii
D) i and iii
E) i and ii
Question 2
The most accurate procedure for finding out whether it is more efficient for a commercial airline to use 727s or 757s for its domestic flights is to
A) compare the fuel efficiency of 727s and 757s.
B) compare the fuel efficiency and operating cost of 727s and 757s.
C) compare the acquisition cost, operating cost, and fuel efficiency of 727s and 757s.
D) compare the acquisition cost, operating cost, and fuel efficiency per passenger seat of 727s and 757s.
E) see whether the airline has chosen to use 727s or 757s.
External Ear
External and internal positions.
External ear.
How to calculate fuel costs
Tuition Costs
Markets and Institutions Market Story Problem