In Coase's confectioner and doctor example, what was the externality?
a. The doctor building his office so close to the confectioner.
b. The vibrations generated by the confectioner's production process.
c. The large number of people entering the confectioner's factory thinking it was the doctor's office.
d. The screams of the doctor's patients disrupted factory workers from performing their duties.
Question 2
If outcomes are ________, exactly one of the outcomes will occur and the probabilities add up to ________.
A) probabilistic; between 0 and 1
B) exhaustive and mutually exclusive; 1
C) exhaustive; 1
D) mutually exclusive; between 0 and 1
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