When it is difficult to assign and enforce property rights,
A) markets result in outcomes that are often inefficient.
B) courts can easily negotiate efficient outcomes.
C) establishing better property rights is always the best way to deal with environmental problems.
D) government regulation can never improve on the outcomes generated by competitive markets.

Question

Quizplus · Accepted Answer

When property rights are difficult to assign and enforce, markets may fail to allocate resources efficiently, leading to potential inefficiencies.

When It Is Difficult to Assign and Enforce Property Rights