A jury ordered McDonald's to pay $2.7 million to Stella Liebeck, a drive-through customer who burned herself with hot coffee after placing the cup between her legs to remove the top and add cream: she claimed that the coffee was too hot. This tells us the our legal system can:
A) promote efficiency by making property rights secure.
B) promote efficiency by lowering transactions costs.
C) lower costs by creating incentives to litigate frivolous suits.
D) raise costs by creating incentives to litigate frivolous suits.
Correct Answer:
Verified
Q24: For politician or regulator of an industry,
Q25: Public Goods:
A) are goods for a few,
Q26: Average wealth loss per firms from litigation
Q27: A monopolist sets the price where marginal
Q28: The problem with public goods is:
A) self-selection.
B)
Q30: The 1890 Sherman Act was legislated by
Q31: In some industries, pollution rights are sold
Q32: In some industries, pollution rights are sold
Q33: Which of the following regulatory procedures transfers
Q34: As an industry moves from competitive to
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