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Economics Homework Five Answers - Student Ten (view source)
Revision as of 13:39, October 15, 2009
, 13:39, October 15, 2009no edit summary
Without transaction costs to gum the works, there would always be successful economic results between people, because "if there is a will there is a way" in the free market. It important because it operates without regard to a person’s wealth, race, sex or nationality.
Without transaction costs to gum the works, there would always be successful economic results between people, because "if there is a will there is a way" in the free market. It important because it operates without regard to a person’s wealth, race, sex or nationality.
'''6. What does an owner do when his marginal revenue exceeds his marginal cost? Explain.'''
'''6. What does an owner do when his marginal revenue exceeds his marginal cost? Explain.'''
He keeps doing what ever he is doing, because he is making money.
'''7. What does the Coase theorem say about the desirability, and the effect, of government regulations that increase transaction costs?'''
'''7. What does the Coase theorem say about the desirability, and the effect, of government regulations that increase transaction costs?'''
It says that they are the gum that messes up the economic machine. The less, the better.
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