According to the Coase Theorem, in the Presence of Externalities

question 354

Multiple Choice

According to the Coase theorem, in the presence of externalities

• A)private parties can bargain to reach an efficient outcome.
• B)government assistance is necessary to reach an efficient outcome.
• C)the assignment of legal rights can prevent externalities.
• D)the initial distribution of property rights will determine the efficient outcome.

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Definitions:

Cytoplasm

The jelly-like substance within a cell that contains the organelles and is enclosed by the cell membrane.

Biofilm

Community of microorganisms living within a shared mass of secreted slime.

Sex Pilus

A thin, tube-like structure used by some bacteria to transfer genetic material to another bacterium during conjugation, a form of sexual reproduction.

Gap Junctions

Specialized structures in animal cell membranes that allow for direct communication between cells through the passage of ions and molecules.