What Economic Argument Suggests That If Transactions Costs Are Sufficiently

question 506

Multiple Choice

What economic argument suggests that if transactions costs are sufficiently low, the equilibrium is economically efficient regardless of how property rights are distributed?

• A) the Coase theorem
• B) the laws of supply and demand
• C) the law of comparative advantage
• D) the law of externalities

Identify the enforceability of promises and modifications in preexisting contracts.

Analyze the legal effect of an illusory promise and gratuitous promises in contract law.

Explain the importance of legal detriment and legal benefit in the context of enforceable contracts.

Understand the role and application of promissory estoppel in contract law.

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Definitions:

Different Needs

Refers to the diverse requirements or desires of individuals or groups.

Formalization

The degree to which rules and procedures are standardized in an organization.

Rules And Procedures

Guidelines and systematic steps established for consistent and orderly conduct or action.

Standardized

The process or practice of making elements uniform or consistent by following a defined set of criteria or standards.