Coase Proposed That in the Case of an Externality If

question 15

True/False

Coase proposed that in the case of an externality if transactions costs are low,bargaining can achieve the socially efficient outcome regardless of the initial allocation of property rights.

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Definitions:

Margin Of Safety Ratio

A financial metric that indicates how much sales can decline before a business reaches its break-even point.

Costs And Expenses Ratio

A financial metric that compares the costs and expenses of a company to its total revenue, indicating the efficiency of its operations.

Variable Costs

Costs that change in proportion to the good or service that a business produces, such as raw materials and direct labor.

Fixed Costs

Costs that do not vary with the level of production or sales volume, such as rent, salaries, and insurance premiums.