A Transaction Between a and B Benefits Both Parties by 50,but

question 10

Multiple Choice

A transaction between A and B benefits both parties by 50,but imposes a cost on C of 20.C has the right to prevent the transaction.A "coordination failure" in this situation

• A)is the cost imposed on C.
• B)is the ability of C to prevent a transaction that still has a net overall gain of 80.
• C)would occur if A and B do not compensate C by 20 or more to allow the transaction.
• D)is that the cost to C is not 100.

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Definitions:

Total Capacitance

The overall capacity of an electrical circuit to store an electric charge, often measured in farads (F).

μ F

Microfarad, a unit of capacitance equal to one millionth of a farad, used to measure the storage of electrical charge.

Dielectric Stress

The molecular stress placed on a dielectric material proportional to the level of applied voltage.

Dielectric

An electric insulator.