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:

Conflict Perspective

A sociological approach that focuses on the struggles between different social classes or groups for limited resources and power.

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods, involving technological innovation and the development of complex infrastructure.

Mass Education

The provision of education to large numbers of people, typically through public schooling systems, aiming at universal literacy and education.

Immigration

The action of coming to live permanently in a foreign country.