The Coase Theorem Asserts That, in the Presence of Externalities

question 406

Multiple Choice

The Coase theorem asserts that, in the presence of externalities,

• A)private economic actors sometimes can reach a bargain that produces an efficient outcome.
• B)private economic actors always can reach a bargain that makes everyone better off.
• C)private solutions cannot be very effective.
• D)corrective taxes cannot be very effective.