The Coase Theorem States That When Transactions Costs Are Low,then

question 108

Multiple Choice

The Coase theorem states that when transactions costs are low,then:

• A)bargaining will never lead to a socially efficient allocation.
• B)bargaining will lead to a socially optimal allocation only if liability is placed on the polluter.
• C)bargaining will lead to a socially optimal allocation only if liability is placed on the victim of pollution.
• D)bargaining will lead to a socially efficient allocation regardless of where liability is placed.
• E)the governmental intervention becomes absolutely necessary.

---

Definitions:

Reinforcement

A process in behavior analysis used to increase the likelihood of a desired response by either presenting a rewarding stimulus (positive reinforcement) or removing an adverse stimulus (negative reinforcement).

Continuous Reinforcement

A method of learning in which every correct response is followed by a reward, fostering quick acquisition of a desired behavior.

Simplest

Pertaining to the least complicated or most straightforward version, form, or method of something.

Schedule

A plan that details when certain tasks or activities are to be done, outlining a timeline for events.