Business, 15.03.2020 20:38 LindaCat78

Why is the Coase theorem often inapplicable to real world situations?

A) Trades in externalities are impossible
B) Bargaining outcomes are usually inefficient
C) The government usually intervenes
D) Transaction costs are rarely low

Answers: 3

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Answer from: chelseayazzie16

Answer B) Bargaining outcomes are usually inefficient

Explanation: This is because private parties often fail to resolve the problem of externalities on their own.

Answer from: kawaunmartinjr10

The correct answer is letter "D": Transaction costs are rarely low.

Explanation:

Named after British economist Ronald Coase (1910-2013) the Coase Theorem is a legal and economic principle that states that when there are open markets and no transaction costs transactions will lead to an efficient and beneficial to all parties' results, regardless of how property rights are divided.

Transaction costs are the expenses incurred in coming to a beneficial agreement with another party. Transaction costs are hardly ever low to consider reasonable bargaining can take place since the interest of one party will most of the time be higher than the other. To agree, both parties will have to give up a big part of their demands.

Thus, the rarely low transaction costs make the Coase Theorem unfeasible.

Answer from: Quest

Via: "if you are found to be supplying or dealing drugs, the punishment is likely to be tough. supplying drugs doesn’t just apply to dealers. if police suspect that you intend to share drugs with your friends, this is still considered to be supplying.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

- up to life in prison or an unlimited fine (or both) for a class a drug- up to 14 years in prison or an unlimited fine (or both) for a class b or class c drug."sorry if this was a school question, you didnt supply options so i assumed it was a personal question, which if it is, reconsider selling or having possesion of any drugs at all. i wish you the best!

Answer from: Quest

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.

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Why is the Coase theorem often inapplicable to real world situations?

A) Trades in exter...