Under the Coase Theorem, a Private Solution to an Externality

question 84

Multiple Choice

Under the Coase theorem, a private solution to an externality yields a(n) _______ efficient outcome compared to a government solution.

• A)more
• B)less
• C)equally
• D)None of these are true.

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Definitions:

Toyota Production System

A highly efficient and integrated approach to production and manufacturing, emphasizing waste reduction, continuous improvement, and customer focus.

Built-in

Embedded or integrated directly into something, not separate or removable.

Automatic Tests

Tests that are executed by software tools which automatically perform a set of instructions to validate the behaviour or performance of an application or system.

Kanbans

A scheduling system for lean manufacturing and just-in-time manufacturing (JIT).