Which of the following is true of the Coase theorem?

Question

Quizplus · Accepted Answer

The Coase theorem is concerned with the private attainment of social efficiency and the conditions for its attainment, specifically in addressing externalities. It does not pertain to distributive objectives or social justice, and it actually implies that when bargaining is possible, social efficiency can be achieved through private agreements. While the Coase theorem emphasizes the role of private parties, it does not necessarily underrate the role of government in assigning entitlements, as it recognizes that well-defined property rights are necessary for efficient private bargaining.

Which of the Following Is True of the Coase Theorem