In Which of the Following Cases Is the Coase Theorem

question 156

Multiple Choice

In which of the following cases is the Coase theorem most likely to solve the externality?

• A)Ed is allergic to his roommate's cat.
• B)Chemicals from manufacturing plants in the Midwest are causing acid rain in Canada.
• C)Polluted water runoff from farms is making residents of a nearby town sick.
• D)Industrialization around the world is causing global warming.

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