Some public & labor economics related questions...
- For each of the following situations, is the Coase Theorem applicable? Why or why not?
a. A farmer who grows organic corn is at risk of having his crop contaminated by genetically modified corn grown by his neighbours
b. In Silveiras, Brazil, queen ants are regarded as a delicacy, but recently the ant haul has been dwindling because of pesticides used on eucalyptus trees that are planted to produce cellulose for paper and other products.
c. Following a military coup in Madagascar, a weak president was installed who was unable to stop the selling of Rosewood trees to China that was illegally cut down from the national parks.
d. Users of the Internet generally incur a zero incremental cost for transmitting information. As a consequence, congestion occurs, and users are frustrated by delays.