The Coase Theorem States That

question 162

Multiple Choice

The Coase theorem states that

• A)positive externalities are directly related to the weather-the better the weather, the more positive externalities.
• B)in the case of trivial or zero transaction costs, negative externalities are more likely to appear.
• C)when transaction costs are high, positive externalities will be minimized.
• D)in the case of trivial or zero transaction costs, the property rights assignment does not matter to the resource-allocative outcome.

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