The proposition that,if bargaining is costless and property rights are well-defined,the market can achieve an efficient outcome is the:
A)Coase theorem.
B)property rights paradigm.
C)market rights theorem.
D)efficient environment paradigm.

Question

Quizplus · Accepted Answer

The Coase theorem states that if bargaining is costless and property rights are well-defined, then the market can achieve an efficient allocation of resources regardless of the initial assignment of property rights. Therefore, option A is the correct answer. The other options are not relevant to the Coase theorem or the concept of efficient allocation of resources.

The Proposition That,if Bargaining Is Costless and Property Rights Are