Chapter14: Monopolistic Competition And Product Differentiation
Section: Chapter Questions
Problem 3P
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Why would good quality second hand cars withdraw from the market? Use economic theory to discuss this
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The Coase Theorem says that if people negotiate the right perform activities that cause externalities, they can always arrive at efficient solutions to problems caused by externalities. Use an example to explain why the people that are harmed are willing to pay to stop pollution.
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