Which of the Following Is Not a Necessary Condition for the Coase

question 31

Multiple Choice

Which of the following is not a necessary condition for the Coase theorem?

• A)Property rights are clearly defined.
• B)The costs of bargaining are sufficiently low.
• C)The government intervenes to internalize the externality.
• D)There are only a few parties involved.

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Definitions:

Decimal Place

A position to the right of a decimal point in a number, representing a fraction of a whole.

Inventory Turnover

A financial ratio that measures how many times a company has sold and replaced its inventory over a certain period of time.

Decimal Place

Refers to the position or number of digits to the right of the decimal point in a decimal number, indicating a part of a whole in fractional terms.

Working Capital

The difference between a company’s current assets and current liabilities, indicating its short-term financial health and operational efficiency.