The Coase Theorem Suggests That Private Markets May Not Be

question 114

Multiple Choice

The Coase theorem suggests that private markets may not be able to solve the problem of externalities

• A)if the government does not become involved in the process.
• B)when the number of interested parties is large and bargaining costs are high.
• C)if the firm in the market is a monopoly.
• D)if some people benefit from the externality.

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