Author Question: What three conditions must be satisfied in order for the Coase theorem to work? What will be an ... (Read 92 times)

bobbysung · **on:** Jun 29, 2018

What three conditions must be satisfied in order for the Coase theorem to work?

What will be an ideal response?

Question 2

What are some of the components of marginal cost and marginal benefit that the producer of a movie faces?

What will be an ideal response?

Dnite · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

(1.) The basic rights at issue must be understood.
(2.) There must be no impediments to bargaining.
(3.) Only a few people can be involved.

Answer to Question 2

Some of the marginal costs the producer faces are the cost of an actor or actress, the costs of the crew for a day, the costs of a location, and the costs of advertising in a newspaper. The marginal benefits the producer enjoys are his or her salary and/or profit participation from the movie, royalties from the movie, the prestige resulting from a successful movie, and any awards given to the producer of the movie.