Near an Ocean Beach, a High-Rise Building Is Being Constructed

question 149

Multiple Choice

Near an ocean beach, a high-rise building is being constructed that will block the scenic view of the ocean for the residents of a low-rise building. The Coase theorem suggests that this type of dispute between the owners of high-rise and low-rise buildings

• A)can be resolved by the owners themselves through private bargaining.
• B)has to be resolved by city government officials.
• C)can only be resolved by a zoning ordinance restricting high-rise buildings.
• D)should be resolved by a government fine for the builder of the high-rise.

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Definitions:

Corporate Concentration

Describes a market condition characterized by the dominance of a small number of large firms, leading to reduced competition and potentially higher prices for consumers.

War

A state of armed conflict between different countries or different groups within a country.

Merger

The combination of two or more companies into one, either by closing the old entities into one new entity or by one company absorbing the others.

Rule Of Reason

A legal doctrine used in antitrust law to determine if a business practice is anti-competitive, considering if it has legitimate business purposes and its overall impact on competition.