Consider a situation in which a utility company emits high levels of sulfur dioxide and the company is not liable for the damages its pollution causes. according to the coase theorem, government action is to achieve an amount of pollution.

a) necessary; equitable
b) necessary; efficient
c) not necessary; equitable
d) not necessary; efficient
 

d) not necessary; efficient

Explanation:

Coase theorem focuses on mutual negotiation between the parties in conflict rather than involvement of the third parties that is government in order to increase any utility or services.

Although the pollution in the given instance shall not exceed the maximum acceptable level.

Thus, it shall be efficient amount of pollution.

In that case, no government shall regulate in between.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; comparing the additional benefits and costs;