Coase's contribution suggests:

Question

Quizplus · Accepted Answer

Coase's contribution, known as the Coase theorem, states that in a situation with externalities, private parties can resolve the issue without government intervention as long as transaction costs are low. This implies that private solutions can be more efficient than government intervention, which contradicts options A and B. Coase's contribution did not suggest an increasing role for economists, so option C is also incorrect. Therefore, the best choice is D.

Coase's Contribution Suggests