Ronald Coase's analysis of externalities emphasizes the importance of:

Question

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Coase's analysis highlights that assigning property rights and allowing for bargaining among affected parties can encourage efficient outcomes in the presence of externalities. Choice A (command-and-control regulations) and choice B (effluent taxes) are both policy solutions that might be proposed to address externalities, but they are not the main emphasis of Coase's analysis. Choice D (international sovereignty) is not directly related to the analysis of externalities.

Ronald Coase's Analysis of Externalities Emphasizes the Importance Of