Part I of the Coase Theorem States That When There

question 47

Multiple Choice

Part I of the Coase Theorem states that when there are well-defined property rights and costless bargaining,then,in a market in which there is an externality,which statement is TRUE?

• A) The socially optimal level of consumption can be achieved through the use of taxes and subsidies by the government.
• B) The socially optimal level of consumption can be achieved through the use of quantity restrictions by the government.
• C) The socially optimal level of consumption can be achieved through negotiations between the affected parties.
• D) The socially optimal level of consumption cannot be achieved without mediation by the government.

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