Author Question: The Coase theorem states that (Read 28 times)

kellyjaisingh · **on:** Apr 19, 2019

Question 1

If there are external costs of production and firms do not have to account for these costs, then the firms will ________ and ________ compared with the efficient values.

◦ underproduce; underprice
◦ underproduce; overprice
◦ overproduce; underprice
◦ overproduce; overprice

Question 2

The Coase theorem states that

◦ the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
◦ under certain conditions, private parties can arrive at the efficient solution without government involvement.
◦ if there are external costs in production, the government must intervene in the market to assure that the efficient level of output is produced.
◦ public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good.

sailorcrescent · **Reply #1 on:** Apr 19, 2019

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

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