-Keeping in Mind the Coase Theorem, in the Figure Above

question 251

Multiple Choice

-Keeping in mind the Coase theorem, in the figure above, if the pesticide factories own the lake, the market does what?

• A) overproduces 120 tons of pesticide
• B) underproduces 120 tons of pesticide
• C) overproduces 60 tons of pesticide
• D) produces the efficient quantity of pesticide

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