According to the Coase theorem,the inefficiencies caused by externalities can be removed by the private sector if individuals enter into appropriately structured deals,provided that the transaction costs of such deals are sufficiently low.

Question

Quizplus · Accepted Answer

The Coase theorem states that the private sector can internalize externalities and eliminate inefficiencies through private bargaining, as long as transaction costs are sufficiently low. Therefore, option A is true.

According to the Coase Theorem,the Inefficiencies Caused by Externalities Can