Author Question: A resource's marginal product is a. the revenue produced by one additional unit of that resource, ... (Read 48 times)

vicky · **on:** Jun 30, 2018

A resource's marginal product is
a. the revenue produced by one additional unit of that resource, other things constant
b. the total output produced by one unit of that resource, other things constant
c. the additional output produced by one additional unit of that resource, other things constant
d. the total output divided by the number of units of that resource employed
e. the total output times the number of units of that resource employed

Question 2

According to the Coase theorem, in order to solve a negative externality problem efficiently,
a. the property right must be assigned to the party with the least-cost alternative
b. the property right must be assigned to the victim of pollution
c. transaction costs must be high
d. transaction costs must be low
e. property rights must be determined by the courts