According to the Coase Theorem, Externality Problems May Be Solved

question 125

Multiple Choice

According to the Coase theorem, externality problems may be solved if the parties involved can negotiate.Which of the following is also needed?

• A)clearly defined bargaining costs
• B)enforceable bargaining costs
• C)clearly defined, enforceable property rights and low bargaining costs
• D)a property right that cannot be bought or sold
• E)government regulation

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Water that is safe for consumption, free from contaminants and pollutants, essential for health and wellbeing.