Author Question: Which of the following is an implication of the Coase Theorem? A) Bargaining cannot lead to an ... (Read 79 times)

imowrer · **on:** Jun 29, 2018

Which of the following is an implication of the Coase Theorem?

A) Bargaining cannot lead to an efficient allocation of resources.
B) Government intervention is not always necessary to solve externality problems.
C) Negotiation leads to an efficient outcome if transaction costs are high.
D) Taxation leads to an efficient allocation of resources regardless of who holds the property rights.

Question 2

Refer to the table above. What is the market supply of labor per week when the wage rate is 75?

A) 28 hours
B) 50 hours
C) 71 hours
D) 94 hours