Ecn 361 topic 4 - Study guides, Class notes & Summaries

Topic 4DQ1 The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms tend to free-ride on the knowledge created by others and, as a result, devote too few resources to the creation of knowledge. How does the U.S. government correct for this apparent market failure?

Topic 4DQ2 The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution? Explain your answer.

ECN 361 Topic 4 DQ 1 Participation & Responses

ECN 361 Topic 4 DQ 2 Participation & Responses

ECN 361 Topic 4 DQ 1 Participation & Responses

ECN 361 Topic 4 DQ 2 Participation & Responses

Topic 4DQ1 The creation of knowledge is a public good. Because knowledge is a public good, profit-seeking firms tend to free-ride on the knowledge created by others and, as a result, devote too few resources to the creation of knowledge. How does the U.S. government correct for this apparent market failure?

Topic 4DQ2 The Coase theorem suggests that efficient solutions to externalities can be determined through bargaining. Under what circumstances will private bargaining fail to produce a solution? Explain your answer.