The insight that people can always arrive at efficient solutions to the problems caused by externalities if they can negotiate the purchase and sale of the right to perform activities that cause externalities is called the ________.
A)Sherman Act
B)Coase Theorem
C)tragedy of the commons
D)prisoner's dilemma

Question

Quizplus · Accepted Answer

The Coase theorem states that if at no cost people can negotiate the purchase and sale of the right to perform activities that cause externalities, they can always arrive at efficient solutions to the problems caused by externalities.

The Insight That People Can Always Arrive at Efficient Solutions