Explain why class actions an important economic function


Problem

Suits that have no legal merit differ from those that have some merit but where the victim's damages are less than the cost of litigation. (The latter are sometimes referred to as negative expected value suits.) Given the existence of such suits, explain why class actions that bundle small meritorious cases serve an important economic function.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: Explain why class actions an important economic function
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