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The Coase theorem suggests that private remedies can effectively address problems of externalities so long as: (a) no party is a monopoly. (b) no party benefits from the externality. (c) the effect of the externality is large. C (d) all parties can bargain without cost. (e) the government actively facilitates the private remediation process. QUESTION 18 Jenny is house hunting. She has a 90% chance of finding a house for $550,000 and a 10% chance of finding a house for $530,000. The marginal cost of house hunting increases by $500 per house she investigates. That is, the marginal cost of considering the first house is $500, the second house $1,000 and so on. At most, Jenny should look at how many houses? O (a) 4. C (b) 10. O (c) 12. O (d) 15. O (e) None of the above.Under the assumptions of perfect competition, the cost of searching for more information about prices and the quality of goods on sale: O (a) is zero because every market participant already knows the market price of the standardised product. O (b) is infinite because there many buyers and sellers. O (c) decreases as more information is obtained. O (d) increases as more information is obtained. O (e) is positive and constant as more information is obtained. QUESTION 20 An example of adverse selection is: (a) people with high-risk lifestyles withholding information about this while purchasing more life insurance than others. (b) purchasing insurance for a new car you bought impulsively after watching advertisements for it on TV. (c) suppliers who charge more for some products than for other products with the same quality. O (d) suppliers who charge some people more than others for the same products. C (e) All of the above