Ronald Coase claimed that when many people are affected by negative externalities, it becomes difficult to negotiate a mutually beneficial outcome due to:
A) government regulations.
B) corrective taxes.
C) transaction costs.
D) subsidies.

Question

Quizplus · Accepted Answer

Ronald Coase argued that when many people are affected by negative externalities, the primary obstacle to negotiating a mutually beneficial outcome is the presence of high transaction costs. These costs include the expenses related to bargaining, reaching agreements, and enforcing those agreements among the parties involved.

Ronald Coase Claimed That When Many People Are Affected by Negative