Author Question: Assuming that transactions costs are sufficiently low, the Coase theorem results in the economic pie ... (Read 78 times)

kellyjaisingh · **on:** Jun 29, 2018

Assuming that transactions costs are sufficiently low, the Coase theorem results in the economic pie being maximized. What impact do legal constraints have on this prediction of the Coase theorem?

What will be an ideal response?

Question 2

Of the following market structures, which is the most competitive?

A) perfect competition
B) monopolistic competition
C) monopoly
D) oligopoly

scikid · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Legal restraints will not affect the total amount of income, but they will affect the shares of that income that go to each party to the transaction.

Answer to Question 2

A