Match the Following with the Descriptions Below

question 16

Essay

Match the following with the descriptions below

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Definitions:

Bargaining Costs

The expenses in time, resources, or money that are incurred during the process of negotiating agreements between parties.

Coase Theorem

A principle stating that, in the presence of clear property rights and negligible transaction costs, parties can negotiate to correct externalities and allocate resources efficiently.

Efficient Outcome

A situation in which resources are allocated in the most effective manner, maximizing total benefit and minimizing waste.

Efficient Outcome

An economic situation in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.