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Author Question: Firms that are most likely to buy marketable pollution rights are those that produce the most ... (Read 136 times)

joe

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on: Jul 1, 2018
Firms that are most likely to buy marketable pollution rights are those that produce the most pollution per unit of output produced.
 
  Indicate whether the statement is true or false

Question 2

In which of the following situations would the Coase theorem more likely to be applied?
 
  A) Two neighbors: a farmer and a beekeeper.
  B) Highway drivers and the dwellers of neighborhoods crossed by the highway.
  C) A railroad and its adjacent land owners.
  D) None of the above.
Microeconomics ¦ Perloff ¦ 8th Edition
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asdfasdf

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Reply #1 on: Jul 1, 2018
Answer to Question 1

False. Firms that will buy pollution rights are those whose products are worth a lot relative to the harm from pollution they create.

Answer to Question 2

A


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joe

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Reply #2 on: Jul 1, 2018
Thank you :)


asdfasdf

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Reply #3 on: Jul 1, 2018
Happy to help you


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