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.Management Sciences
A. costs incurred due to lawyers’ fees
B. costs incurred to reduce the pollution
C. costs incurred to enforce the agreement
D. costs incurred due to a large number of parties affected by the externality
E. All of these answers are considered transaction costs
Related Mcqs:
- A positive externality generates ?
- A. a social cost curve that is above the supply curve (private cost curve) for a good B. none of these answers C. a social value curve that is above the demand curve (private value curve) for good D. a social value curve that is below the demand curve (private value curve) for a good...
- A positive externality (that has not been internalized) caused the ?
- A. equilibrium quantity to exceed the optimal quantity B. equilibrium quantity to equal the optimal quantity C. optimal quantity to exceed the equilibrium quantity D. equilibrium quantity to be either above or below the optimal quantity...
- According to the Coase theorem, private parties can solve the problem of externalities if ?
- A. there are no transaction costs. B. each affected party has equal power in the negotiations. C. the party affected by the externality has the initial property right to be left alone. D. There are a large number of affected parties. E. the government requires them to negotiate with each other...
- Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and quiet at a value of €150. Which of the following statements is true about an efficient solution to this externality problem if Roberto has the right to play loud music and if there are no transaction costs ?
- A. Thomas will pay Roberto between €100 and €150 and Roberto will continue to play loud music B. Roberto will pay Thomas €150 and Roberto will continue to play loud music C. Thomas will pay Roberto between €100 and €150 and Roberto will stop playing loud music D. Roberto will pay Thomas €100 and Roberto … Roberto and Thomas live in a university hall of residence. Reberto values playing loud music at a value of €100. Thomas values peace and...
- The gas-guzzler tax that is placed on new vehicles that are very fuel inefficient is an example of ?
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