The Coase Theorem Will Apply Only If

question 48

Multiple Choice

The Coase theorem will apply only if

• A) the courts can be used to determine the amount of compensation that must be made to the damaged party.
• B) the amount of compensation that must be made to the damaged party is small.
• C) the number of people involved is small.
• D) an individual who is not affected by the externality can negotiate a settlement between the parties imposing the externality and the parties that are harmed by the externality.

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Definitions:

Programs

Instructions written in a programming language that a computer or device executes to perform specific tasks.

Task

A specific piece of work or operation to be performed, often part of a larger process or system functionality.

Priority Task

A task given preferential execution over other tasks in a computing environment, based on urgency or importance.

Periodic

The term periodic refers to events or phenomena that occur at regular intervals, characteristic of cyclic or repeating patterns over time.