If Bargaining Is Costless and an Externality Exists

question 22

Multiple Choice

If bargaining is costless and an externality exists:

• A)an efficient outcome may be reached depending on which party is assigned property rights.
• B)an efficient outcome will be reached regardless of which party is assigned property rights.
• C)an efficient outcome will not be reached without government intervention.
• D)an efficient outcome can never be reached.

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Definitions:

Niche-Market Approach

A marketing strategy that targets a specific, well-defined segment of the market.