The Coase Theorem States That

question 183

Multiple Choice

The Coase theorem states that

• A)government intervention is always needed if externalities are present.
• B)assigning property rights is the only thing the government should do in a market economy.
• C)if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities.
• D)a free-market equilibrium is the best solution to address externalities.

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Definitions:

Establishing Business

The process of starting a new company or venture, including planning, making key financial decisions, and completing legal activities required for operation.

Getting Customers

The process of attracting and acquiring individuals or businesses to purchase goods or services.

Finding Financing

The process of securing funds for business operations, investments, or projects.

Business Plan

A comprehensive document that outlines the objectives, strategies, financial forecasts, and market analysis of a business endeavor.