Your neighbour's dog barks and disturbs your sleep. According to the Coase theorem, in which of the following scenarios can you and your neighbour NOT come to a resolution?

Question

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The Coase theorem suggests that if transaction costs are low and property rights are clearly defined, parties can negotiate a mutually beneficial solution regardless of who holds the rights. However, if the marginal benefits to both parties are exactly equal, there's no incentive for either party to make a concession, making it difficult to reach a resolution.

Your Neighbour's Dog Barks and Disturbs Your Sleep