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 when property rights are well defined and transactions costs are low.
B) and when property rights do not exist.
C) and that property rights are irrelevant to the existence of externalities.
D) and when corporations are not greedy.

Question

Quizplus · Accepted Answer

Coase's theorem suggests that if property rights are well-defined and transaction costs are low, private negotiations will lead to efficient outcomes regardless of the initial allocation of rights.

A Key Contribution of Ronald Coase Is That He Pointed