In Which of These Situations Would the Coase Theorem Be

question 93

Multiple Choice

In which of these situations would the Coase theorem be MOST likely to work?

• A) A thousand firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean.
• B) A group of nine firms use a lake, there are no other users, all their costs could be reduced somewhat by polluting, but all would have lower water intake costs if the lake were clean.
• C) Worldwide deep sea fishing rights need to be negotiated among thousands of fishermen from different countries.
• D) One hundred and fifty nations need to come to an accord about CFC generation to combat ozone depletion.
• E) A group of chemical firms high upstream on the Mississippi River have emissions that affect not only communities downstream along the river, but around the Gulf of Mexico as well.

---

Definitions:

Collaborative Teams

Groups of individuals who work together towards a common goal, sharing information, resources, and responsibilities.

Office Layout

The arrangement of physical space in an office, including the placement of furniture and equipment, designed to optimize work efficiency and employee comfort.

Cubicles

Partially enclosed office workspaces, separated from neighboring workspaces by partitions, designed to give employees a measure of privacy.

Decreased Absenteeism

A reduction in the frequency and duration of employees being absent from work, indicating increased engagement and job satisfaction.