Assuming Transaction Costs Are Small,the Coase Theorem Would Predict That

question 217

Multiple Choice

Assuming transaction costs are small,the Coase theorem would predict that private parties could arrive at an efficient solution for which of the following problems?

• A)One neighbor lets his dog run through another neighbor's garden, damaging her flowers.
• B)One neighbor doesn't mow her yard.
• C)One neighbor deals drugs out of his house.
• D)All of the above are correct.