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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)

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Answer:

False

Explanation:

It is 'Incremental cost allocation method' that ranks the individual users of a cost object in order of users most responsible for a common cost (the most responsible will be primary user) and then uses these rankings to allocate the costs among the users (incremental users).

Stand-alone cost allocation method allocates cost proportionately among all users based on a basis which relates to each users proportion of the total. For example the basis could be proportion of sales of responsibility centers to total sales of organization.

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A __________ is a group of products that are closely related because they satisfy a class of needs, are used together, are sold
konstantin123 [22]

Answer: product line

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Wittaler [7]

Answer:

Marketing, sales and customer service

Explanation:

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3 years ago
Assume that you purchased a $1,000 perpetual bond (coupon payment is $50) and the interest rate on that bond declined from 5 per
Svetlanka [38]

Answer:

D) all of the above

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If rate = 2%;

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Hence , all these choices are correct!

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3 years ago
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