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Which Statement Is TRUE Regarding the Coase Theorem

Question 33

Multiple Choice

Which statement is TRUE regarding the Coase theorem?


A) The final distribution of income is independent of the initial distribution of property rights.
B) The Coase theorem applies only to negative externalities.
C) If transaction costs are negligible, the outcome is efficient, regardless of the distribution of property rights.
D) There are few real-world applications of the Coase theorem.

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