In Markets with Externalities, If Property Rights Are Assigned Unambiguously

question 16

Multiple Choice

In markets with externalities, if property rights are assigned unambiguously and if the parties involved can negotiate costlessly, then the ________ theorem suggests that the parties will arrive at a Pareto-optimal outcome regardless of which one owns the property rights.

• A) Coase
• B) Dolan
• C) Pigou

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Definitions:

Hemopoietic Tissue

Blood-forming tissue.

Red Bone Marrow

A tissue found in the interior of bones, rich in blood vessels and stem cells, responsible for the production of blood cells.

Elastic Cartilage

A type of flexible cartilage found in areas like the ears and epiglottis, providing strength and elasticity.

External Ears

The outer parts of the ear, including the pinna and the ear canal, which collect sound waves and direct them inward.