1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
melomori [17]
3 years ago
12

The proposition that if private parties can bargain without cost over the allocation of resources, they can solve the problem of

externalities on their own, is called: a. the Pigovian theorem. b. a corrective tax. c. the externality theorem. d. the Coase theorem.
Business
1 answer:
inessss [21]3 years ago
8 0

Answer:

It is called d. the Coase theorem

Explanation:

"If private parties ... over externalities on their own" is the common wording of the Coase theorem.

Besides the commonly mentioned requirement that transaction cost must be zero, there are other assumptions to be satisfied including:

1. Clearly defined property rights (to bargain on)

2. No wealth effects (because the money you receive/pay for the benefits/costs will make you poorer/richer and change how valuable they are to you)

You might be interested in
Equipment with an original cost of $75,000 and accumulated depreciation of $20,000 was sold at a loss of $7,000. As a result of
Tcecarenko [31]

Answer:

O increase by $48,000

Explanation:

A loss is made on disposal of an asset when the amount received from the disposal is lower than the carrying amount of the asset. The carrying amount or net book value of an asset is the difference between the cost of the asset and its accumulated depreciation.

Hence

Carrying amount = $75,000 - $20,000

= $55,000

Let the amount received on disposal be K

K - $55,000 = -$7,000

K = $55,000 - $7,000

= $48,000

This is the amount received from the disposal and it represents an increase in cash.

7 0
3 years ago
Matthew is a divisional manager at Venus Inc. and reports to the CEO of the company. The CEO delegates resources and authority t
ddd [48]

Answer:

A) Information asymmetry.

Explanation:

An information asymmetry can be defined as a situation where there is an imbalance of information between two parties in their knowledge of important points, factors and details. Thus, because one party has more information or knowledge than the other, this usually results in an inefficient outcome and or failure.

The theory of information asymmetry was developed and introduced by three (3) notable Nobel prize winning economists, namely; Michael Spence, George Akerlof and Joseph Stiglitz.

In this scenario, Matthew a divisional manager at Venus Inc. reports to the CEO of the company. Matthew has more employees working for him than required and he has not told the CEO about this, even though there are other departments that are in need of more employees.

<em>Hence, the concept illustrated here is an information asymmetry.</em>

3 0
3 years ago
Kevin thought the laptop was priced too high, but when he found out that it came with a free printer, he decided it was worth th
tiny-mole [99]

Answer:

The correct answer is: door in the face.

Explanation:

The door-in-the-face technique takes place when an individual requests something more than what is offered but the offering is eventually turned down. However, the individual turning down the initial request usually places a reasonable counteroffer so the firs subject complies.

6 0
3 years ago
THIS IS TIMED!!
Dominik [7]

Answer:

b,d,e

Explanation:

i jus know

7 0
3 years ago
Read 2 more answers
En donde se va a desempeñar esa profecion de "medico" ​
IrinaK [193]
El trabajo de un médico se llevará a cabo en un hospital o consultorio médico
5 0
3 years ago
Other questions:
  • Market Value Ratios Val's Volleyball Supply's market-to-book ratio is currently 3.29 times and PE ratio is 5.49 times. If Val's
    9·1 answer
  • Imagine you are writing a plan for how to move toward a career. Which of these pieces of information do you think
    12·1 answer
  • Daniel is the vice president of marketing and sales of an insurance company that sells workers' compensation insurance within th
    15·1 answer
  • The Sarbanes-Oxley Act tightened corporate governance rules by requiring all but which one of the following? Required that the C
    11·1 answer
  • The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 110,000 wheels annuall
    15·1 answer
  • Ratliff Development Corporation purchases a tract of land in 2018 at a cost of $120,000 and subdivides the land into 30 building
    15·1 answer
  • During 2008 the supply of gasoline decreased while at the same time the demand for gasoline increased. If the magnitude of the i
    14·1 answer
  • The Outpost, a sole proprietorship currently sells short leather jackets for $369 each. The firm is considering selling long coa
    5·1 answer
  • 100 POINTS** How does the book " Sounder " Represent Christianity?
    8·1 answer
  • You find that a firm has a total debt ratio of 0. 63. what is the equity multiplier for this firm?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!