Which answer suggests that private markets can be effective in dealing with external costs and benefits?
A) external technology policy
B) the Coase theorem
C) the law of diminishing returns
D) the "invisible hand"

Question

Quizplus · Accepted Answer

The Coase theorem suggests that private markets can effectively deal with external costs and benefits through bargaining and negotiation between affected parties, without government intervention. This highlights the potential for private markets to incentivize efficient allocation of resources and internalize externalities.

Which Answer Suggests That Private Markets Can Be Effective in Dealing