In Markets with Externalities, If Property Rights Are Assigned Unambiguously

question 13

True/False

In markets with externalities, if property rights are assigned unambiguously and if the parties involved can negotiate costlessly, then the Coase theorem suggests that the parties will never arrive at a Pareto-optimal outcome unless the government intervenes.

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Definitions:

Vasocongestion

An increase in blood volume in specific tissues, often relating to sexual arousal.

Penile Erection

The physiological condition in which the penis becomes firm, engorged with blood, and enlarged, often in response to sexual arousal.

Clitoral Swelling

An increase in size or engorgement of the clitoris, typically due to sexual arousal.

Orgasm During Sexual Activities

The climax of sexual excitement, characterized by intensely pleasurable feelings centered around the sexual organs but can encompass the whole body.