If Transactions Costs Are Low, Private Bargaining Will Always Result

question 119

True/False

If transactions costs are low, private bargaining will always result in an efficient solution to the problem of externalities.

---

Definitions:

Prime Purchase

A term not specifically defined in standard economics, potentially referring to a primary or significant purchase by a consumer or business. If referring to Amazon Prime, it's a benefit requiring membership for free or expedited shipping.

Antitrust Laws

Legislation aimed at preventing monopolies and promoting competition among businesses.

U.S. Justice Department

The U.S. Justice Department, also known as the Department of Justice, is a federal executive department responsible for enforcing the law and administering justice in the United States.

Legal Suits

Legal actions taken by one party against another in a court of law, seeking remedies such as damages or specific performance.