According to the Coase Theorem, Private Markets Will Solve Externality

question 420

Multiple Choice

According to the Coase theorem, private markets will solve externality problems and allocate resources efficiently as long as

• A)the externalities that are present are positive, not negative.
• B)government assigns property rights to the harmed party.
• C)private parties can bargain with sufficiently low transaction costs.
• D)businesses determine an appropriate level of production.

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The procedure of making something clean and free from bacteria or other harmful microorganisms.

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The process of eliminating or reducing harmful microorganisms from inanimate objects and surfaces, typically by using chemical agents.

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A process that eliminates or kills all forms of microbial life present on a particular surface, object, or fluid.

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