Which of the Following Is an Implication of the Coase

question 135

Multiple Choice

Which of the following is an implication of the Coase Theorem?

• A) Bargaining cannot lead to an efficient allocation of resources.
• B) Government intervention is not always necessary to solve externality problems.
• C) Negotiation leads to an efficient outcome if transaction costs are high.
• D) Taxation leads to an efficient allocation of resources regardless of who holds the property rights.

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