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rizumidancer rizumidancer
wrote...
Posts: 359
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A week ago

Question 1.

Applying Coase's theorem, if the cost to you from having the airplane seat in front of you reclined is ________ the benefit to the reclining passenger, you should ________.



less than; request a payment from the reclining passenger



greater than; request a payment from the reclining passenger



less than; make a payment to the reclining passenger



greater than; make a payment to the reclining passenger



Question 2.

Offering to pay the passenger in front of you to keep her from reclining her airplane seat is an example of



a Coasian solution to an externality situation.



a tradable exchange contract.



a Pigovian solution to an externality situation.



command-and-control policy.

Textbook 

InMicro


Edition: 1st
Authors:
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ShaeTime3ShaeTime3
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Posts: 289
A week ago
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Answer 1

greater than; make a payment to the reclining passenger



Answer 2

a Coasian solution to an externality situation.

1

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