A key contribution of Ronald Coase is that he pointed out that private transactions are efficient when the number of parties involved is small
A) and that property rights are irrelevant to the existence of externalities.
B) and when corporations are not greedy.
C) and when property rights do not exist.
D) and when property rights are well- defined and transactions costs are low.

Question

Quizplus · Accepted Answer

Ronald Coase's key contribution, as articulated in "The Problem of Social Cost" (1960), is the insight that private transactions can efficiently solve the problem of externalities when property rights are well-defined and transaction costs are low. This principle is foundational to what is known as the Coase Theorem.

A Key Contribution of Ronald Coase Is That He Pointed