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Economics Homework Five - Model (view source)
Revision as of 02:52, October 19, 2009
, 02:52, October 19, 2009added two
:The Coase theorem says that with increasing government regulations, transaction costs increase and efficiency is lost. (Anna)
:The Coase theorem says that with increasing government regulations, transaction costs increase and efficiency is lost. (Anna)
:In applying the Coase theorem with regard to government regulations increasing transaction costs, the consumer will pay more (in time, effort, and money) than he would if the government got out of the way. (Alexander)
8. The greater the number of substitutes for a good, is it more or less price elastic? Explain briefly.
8. The greater the number of substitutes for a good, is it more or less price elastic? Explain briefly.
13. (Optional) Can you think of any consequence of the Coase theorem that is not mentioned in this Lecture?
13. (Optional) Can you think of any consequence of the Coase theorem that is not mentioned in this Lecture?
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:A consequence not mentioned in the lecture of the Coase Theorem is that it reduces the separation between economic classes because the producer's financial situation is no longer important [if the producer has a good in demand]. (Elizabeth)