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.

---

Definitions:

Ages

Refers to the length of time that an individual, object, or phenomenon has existed.

Volunteers

Individuals who offer themselves for a service or undertaking willingly and without pay.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the values in a data set differ from the mean.

Range

The difference between the highest and lowest values in a dataset, indicating the dataset's spread.