The Coase Theorem relies on internalizing externalities through ________.
A) social enforcement mechanisms
B) the provision of corrective subsidies
C) the imposition of corrective taxes
D) negotiations between the parties involved

Question

Quizplus · Accepted Answer

The Coase Theorem argues that externalities can be internalized through negotiations between the parties involved, without the need for government intervention. The parties can reach a mutually beneficial agreement that leads to an efficient outcome.

The Coase Theorem Relies on Internalizing Externalities Through ________