The Coase Theorem States That

question 486

Multiple Choice

The Coase theorem states that

• A)under certain circumstances government intervention is not needed to reach efficient outcomes when an externality is present.
• B)government intervention is always required to reach an efficient outcome when an externality is present.
• C)government intervention cannot lead to an efficient outcome when an externality is present.
• D)only negative externalities can be resolved using government intervention.

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