According to the Coase theorem, under certain conditions the market can internalize externalities.

Name: According to the Coase theorem, under certain conditions the market can internalize externalities.
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The Coase theorem posits that if trade in an externality is possible and there are no transaction costs, parties can negotiate solutions to externalities on their own, leading to an efficient allocation of resources regardless of the initial distribution of property rights.

According to the Coase Theorem, Under Certain Conditions the Market