Question

If an environmental group wanted to prevent the habitat destruction of the Wyoming pocket​ gopher, the Coase theorem would direct the group toA.try to get laws enacted to protect the species.B.bargain in order to obtain the property rights of the gopher habitat.C.physically block any efforts to destroy the habitat.D.protest the destruction while gaining media attention for their cause.

Answer 1

Answer:

The correct answer is B.bargain in order to obtain the property rights of the gopher habitat.

Explanation:

In economics, the Coase Theorem states that in a market where transaction costs are negligible, a dispute between parties where property rights are involved will lead to a bargaining process where the party that gives the most value to whatever it's in dispute will end up winning rights over that property. In this case, the environmental group assigns great value to protecting the habitat of the Wyoming pocker gopher, but they can only fully secure its well-being by securing property rights over said habitat, and given their standing, they can expect to bargain or negotiate successfully. Any other option, like protesting, boycotting, or lobbying, won't be good enough to achieve their goals.

Answer 2

Answer:

B. bargain in order to obtain the property rights of the gopher habitat

Explanation:

The Coase Theorem expresses that under ideal economic conditions, where there is a contention of property rights, the included parties can negotiate or arrange terms that will precisely mirror the absolute expenses and basic estimations of the property rights at issue. Therefore in this case bargain should be made to obtain property rights of the gopher.