Explain that in a world with zero transaction costs

Reference no: EM133287916

According to article titled The Problem of Social Cost" by Ronald Coase

Question 1. What is an example from the paper to explain the reciprocal nature of the problem of social cost.

Question 2. What is an example from the paper to explain that in a world with zero transaction costs, the allocation of resources will be the same whether the damaging business is liable for damages caused or not.

Question 3. And explain why the previous statement is not true in the world of positive transaction costs.

Reference no: EM133287916

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