Which of the following exemplifies inefficient legal assignment of rights with high transaction costs?
A)Agreement between an orchard farmer and a beekeeper.
B)LoJack installation in cars to prevent car theft.
C)The Huntington Beach oil wells.
D)Installation of smog control in cars.

Question

Quizplus · Accepted Answer

The Huntington Beach oil wells exemplify inefficient legal assignment of rights with high transaction costs. There are multiple stakeholders involved, including the oil company, the city, and the residents. Each group has different interests and may have to spend significant time and resources to negotiate and enforce their rights, leading to high transaction costs. The situation also creates potential for legal disputes and uncertainty.

Which of the Following Exemplifies Inefficient Legal Assignment of Rights