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Coase theorem assumptions

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Reference no: EM131607091

In which cases are the Coase theorem's assumptions are likely to be true? Explain.

a. My neighbor wants me to cut down an ugly shrub in my front yard. The ugly shrub imposes an external cost on him and on his property value.

b. A coal-fired electricity plant dumps its leftover hot water into the nearby lake, killing the fish. Thousands of homes line the banks of the lake.

Reference no: EM131607091

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