Suppose a Candy Producer's Operation Interferes with Doctors Working at a Hospital

question 114

Multiple Choice

Suppose a candy producer's operation interferes with doctors working at a hospital. Ronald Coase's solution to the problem most likely would be to

• A)do nothing.
• B)shut down the candy production facility.
• C)find a private remedy.
• D)ask the city mayor to intervene on the part of the hospital.
• E)ask the city mayor to intervene on the part of the candy producer.

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Definitions:

Primarily Liable

Being directly responsible for a debt or obligation, without secondary parties to share the liability.

Secondarily Liable

Someone who is secondarily liable holds responsibility to fulfill an obligation if the primary party fails to do so, commonly seen in guarantor or co-signer financial arrangements.

Payable

Refers to money that is owed by a person or company and must be paid to another party.

Obligation

A legal or moral duty to do or not do something, often with legal implications if not fulfilled.