What possible solution is suggested by the coase theorem

Assignment Help Macroeconomics

Reference no: EM13218712

Almond growers in CA are very concerned. Normally, honey producers would keep their bees next to almond orchards, where the bees would gather nectar and pollinate the almond trees. Lately however, bee keepers have moved to Arizona where it is cheaper to operate. Without the bees, the almond trees had very low yields, so the cost of production rose and profits were down considerably.

a. Describe the externality in this situation.

b. What possible solution is suggested by the Coase Theorem?

c. Is this solution likely or unlikely to work out in this case? Why or why not?

Reference no: EM13218712

Questions Cloud

Determine the profitability of the leading cola syrup : The profitability of the leading cola syrup manufacturers, PepsiCo and Coca Cola, and of the bottlers in the cola business is different. PepsiCo and Coca Cola enjoy 81 operating profit as a percentage of sales; bottlers experience only 15 operatin..

Define the chemical reaction that took place in the body : A 40-year old weighs 150 lb experience abdominal pain and says he consumed two 12oz bottle of beer. The alcohol in the beer is about 5 % alcohol and he said he was drinking over a hour.

How to measure the concentration of hcl : We can measure the concentration of HCl solution by reaction with pure sodium carbonate: 2H^+ +Na_2CO_3 -->2Na^+ +H_2O + CO_2. Complete reaction with 0.9674 + and - 0.0009g of Na_2CO_3 (FM 105.9884 + and - 0.0007) required 27.35 + and - 0.04 mL of..

Explain the determination of copper : the presence of other metal ions from the dissolved brass interfere with the determination of copper in this experiment?

What possible solution is suggested by the coase theorem : Almond growers in CA are very concerned. Normally, honey producers would keep their bees next to almond orchards, where the bees would gather nectar and pollinate the almond trees. Lately however, bee keepers have moved to Arizona where it is chea..

How much production each would supply to the market : OPEC is described as a classical example of what kind of market Why have they had success and failure If OPEC had only two members, Saudi Arabia and Kuwait use game theory to explain how much production each would supply to the market.

Explain what is the ratio of the rate at deg celcius : With initial concenration of A and B of 0.04 mol/L, the rate of formation of AB is measured at 0.005 mmol/(Ls). When the initial concentration of A is raised to 0.07 mol/L, with that of B the same as before, the rate of formation of AB increases t..

Determine the total profits for each firm at the equilibrium : Assume that two companies (C and D) are duopolists that produce identical products. Demand for the products is given by the following linear demand function: P = 600 - Q^c -Q^d where Q^c and Q^d are the quantities sold by the respective firms

Determine what is the marginal cost for unique : Unique Creation holds a monopoly position in the production and sale of magnometers. The cost function facing Unique is estimated to be TC= $100,000 + 20Q a. what is the marginal cost for Unique c. what is the marginal revenue at the price compute..

User Account

All Pages