Which condition(s) must exist for the Coase theorem to hold? I. Property rights must exist.
II) Transactions costs must be measurable.
III) A small number of parties must be involved.
A) I and II only
B) I and III only
C) II and III only
D) I, II and III

Question

Quizplus · Accepted Answer

The Coase theorem requires that property rights are well-defined and that there are a small number of parties involved to facilitate negotiation. Transaction costs must be low or negligible, not necessarily measurable.

Which Condition(s) Must Exist for the Coase Theorem to Hold