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The Theorem Describe by Ronald Coase Suggests That

Question 54

Multiple Choice

The theorem describe by Ronald Coase suggests that:


A) the existence of property rights can result in inefficient solutions to externalities if transactions and enforcement costs are negligible
B) the existence of property rights cannot result in efficient solutions to externalities unless transactions and enforcement costs are substantial
C) only goodwill can successfully offset externalities
D) economists have no useful propositions about compensating for externalities

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