According to the Strong Coase Theorem,when will the assignment of property rights have no effect on the allocation of resources?
A) Always.
B) When there are no transactions costs.
C) When there are no transactions costs and changes in the distribution of income do not have significant effects on market demand curves.
D) When liability is assigned to the party with the least-cost method of dealing with an externality problem.

Question

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The Strong Coase Theorem states that if there are no transaction costs and income distribution changes do not significantly affect market demand, the allocation of resources will be efficient regardless of the initial assignment of property rights.

According to the Strong Coase Theorem,when Will the Assignment of Property