The Coase Theorem is the proposition that if the number of involved parties is low, if property rights ________ and transactions costs are ________, then private transactions are efficient.
A) are nonexistent; low
B) exist; high
C) are nonexistent; high
D) exist; low

Question

Quizplus · Accepted Answer

The Coase Theorem suggests that when property rights are well-defined and transaction costs are low, parties can negotiate to resolve externalities efficiently without government intervention.

The Coase Theorem Is the Proposition That If the Number