The Coase Theorem

question 81

Multiple Choice

The Coase theorem

• A)shows that under certain conditions the market can internalize externalities.
• B)states that economic units should specialize in the production of those goods in which they have a comparative advantage.
• C)asserts that the firm should produce that output at which marginal cost is equal to marginal revenue.
• D)holds that the firm should produce that output at which marginal factor cost is equal to marginal revenue product.

---

Definitions:

Trademark Infringement

The unauthorized use of a trademark or service mark on or in connection with goods and/or services in a manner that is likely to cause confusion, deception, or mistake about the source of the goods and/or services.

Likelihood of Confusion

This refers to a standard used in trademark law to assess whether the similarity between two marks is likely to confuse consumers about the source of the products or services.

Trade Secret

A form of intellectual property comprising confidential information that provides a business with a competitive edge.

Sufficient Value

A concept in contract law that refers to the necessity of both parties exchanging something of value for a contract to be considered valid.