Assuming Transaction Costs Are Small, the Coase Theorem Would Predict

question 367

Multiple Choice

Assuming transaction costs are small, the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?

• A)One neighbor doesn't mow his lawn.
• B)One neighbor doesn't paint her house.
• C)One neighbor comes home on his noisy motorcycle late at night.
• D)All of the above are correct.

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