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zhenek [66]
2 years ago
5

According to the Coase theorem, private parties can negotiate to an efficient solution in the presence of externalities if the _

_____ is (are) relatively low.
Business
1 answer:
gulaghasi [49]2 years ago
3 0

Answer:

transaction costs is your answer

Explanation:

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Suppose that there are three beachfront parcels of land available for sale in Asilomar and six people who would each like to pur
poizon [28]

Answer:

When the minimum price is 582,500, the forth parcel WILL not be sold because the willingness to pay is LESS and no one will purchase it from the seller for atleast the minimum price.

Explanation:

Bob 620,000

Sean 750,000

Yvette 660,000

The people that will buy one of the three beachfront parcels are Bob, Sean and Yvette because they are the ones willing and has the ability to purchase the beachfront parcel of land available for sale in Asilomar.

Cho, Eric and Gianny may as well have the desire to own the beachfront land in Asilomar, but they do not have the ability to pay the selling price.

Therefore when the minimum price is 582,500, the forth parcel WILL not be sold because the willingness to pay is LESS and no one will purchase it from the seller for atleast the minimum price.

3 0
3 years ago
Mitchell has a cause: He loves cats. As an economist, he could earn $100,000 as a faculty member, but instead he decides to devo
Usimov [2.4K]

Answer: (e.) The same pay as either a professor or as a chief economist at the Humane Society.

Explanation:

The correct answer would be <u>option (e)</u> because in this case there lies an ambiguity i.e. we are uncertain about skillets that an economists should be endowed with or for being a faculty member.

Therefore , it can be concluded that he would  get at least as good pay as being faculty. In both cases he'll be better off.

8 0
3 years ago
The government banned running of an industry near a famous monument Taj Mahal, but ABC limited does not go by order of the court
notka56 [123]

Answer:

No

Explanation:

Taj Mahal is one of the greatest monument in the world. It is very beautiful. It is located in India. It is made up of white marble. Many people from all parts of the world come to visit Taj Mahal.

But recently the color of the marble changes its color to light yellow due to pollution. The companies near by are emitting harmful gases to the atmosphere for which the color of the white marble changed its color and became light yellowish brown.

In the context, company ABC Limited still operating near the Taj Mahal is not fulfilling its responsibility as it is destroying the beauty and existence of the world famous Taj Mahal.

3 0
3 years ago
A monopolist faces:
lana [24]

Explanation:

c. a downward sloping demand curve.

8 0
3 years ago
What is your reaction to Harriet's suggestion of using the cost of debt only?
Ahat [919]

Answer:

No, it is a bad idea to use only the cost of debt

Explanation:

Only using the cost of debt, is not a good idea because too much amount of borrowing could lose the confidence of the investors and it could lead to the uncertainty in the future cash flows.

Suppliers might be worried regarding the financial situation and lead to the supply disruption. Though, the debt might save the tax expenses, which could lead to the negative cash flow.

When the company does not have adequate amount of cash at hand, it could cause many disruptions of financial. WACC (Weighted Average Cost of Capital) rates need to be used as the capital costs as it weigh the used capital cost and the used debt.

8 0
3 years ago
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