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Author Question: Private solutions to externalities are most effective if ________. A) transaction costs ... (Read 54 times)

Garrulous

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Private solutions to externalities are most effective if ________.
 
  A) transaction costs associated with bargaining are low
  B) transaction costs associated with bargaining are high
  C) property rights are not defined clearly
  D) a large number of people are affected by the externalities

Question 2

Large and long-continued increases in the demand for electricity will tend to result in
 
  A) a higher cost of generating electricity.
  B) a higher price for electricity but no increase in the cost of generating it.
  C) a reduction in the quantity of electricity demanded as a consequence of higher prices.
  D) an increase in the quantity of electricity demanded and hence a decrease in its price.



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swimkari

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Answer to Question 1

A

Answer to Question 2

A



Garrulous

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swimkari

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