Author Question: According to the Coase theorem, externality problems may be solved if the parties involved can ... (Read 34 times)

ssal · **on:** Jun 30, 2018

According to the Coase theorem, externality problems may be solved if the parties involved can negotiate. Which of the following is also needed?
a. clearly defined bargaining costs
b. enforceable bargaining costs
c. clearly defined, enforceable property rights and low bargaining costs
d. a property right that cannot be bought or sold
e. government regulation

Question 2

The more elastic the supply of a resource,
a. the greater is economic rent as a proportion of total earnings
b. the greater is opportunity cost as a proportion of total earnings
c. the fewer alternative uses the resource has
d. the greater the derived demand for the resource
e. the lower the derived demand for the resource