Which of the Following Statements About the Coase Theorem Is

question 278

Multiple Choice

Which of the following statements about the Coase theorem is true?

• A)Underlying the results of the Coase theorem is the idea that private parties can bargain without cost over the allocation of resources.
• B)The Coase theorem asserts that private solutions to externalities invariably lead to inefficient allocations of resources.
• C)The Coase theorem applies to negative externalities, but not to positive externalities.
• D)All of the above are correct.

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