The Coase theorem says that which of the following is necessary to lead to an efficient use of resources?
A) presence of transaction costs
B) existence of property rights
C) government intervention
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The Coase theorem states that if property rights are well-defined and transaction costs are negligible, parties can negotiate to correct externalities and allocate resources efficiently without government intervention.

The Coase Theorem Says That Which of the Following Is