onsider a situation in which a utility company emits high levels of sulfur dioxide and the company is not liable for the damages its pollution causes. According to the Coase theorem, government action is ______to achieve an ______amount of pollution. A. not necessary; equitable B. necessary; equitable C. necessary; efficient D. not necessary; efficient
onsider a situation in which a utility company emits high levels of sulfur dioxide and the company is not liable for the damages its pollution causes. According to the Coase theorem, government action is ______to achieve an ______amount of pollution. A. not necessary; equitable B. necessary; equitable C. necessary; efficient D. not necessary; efficient
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a situation in which a utility company emits high levels of sulfur dioxide and the company is not liable for the damages its pollution causes. According to the Coase theorem, government action is ______to achieve an ______amount of pollution.
not necessary; equitable
necessary; equitable
necessary; efficient
not necessary; efficient
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