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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Definitions:

Interests

Activities, subjects, or areas that capture the attention, curiosity, or concern of an individual or group.

Goals

Targets or outcomes that an individual or group endeavors to achieve, often requiring planning and effort.

Same-Sex Partners

Individuals in a romantic or marital relationship who are of the same sex or gender identity.

Opposite-Sex Partners

Individuals engaged in a romantic or sexual relationship who are of different sex.