In part,the Coase theorem is a proposition about
A) assigning property rights.
B) measuring private costs.
C) subsidizing external benefits.
D) taxing external costs.
E) how increasing transactions costs can reduce deadweight losses.

Question

Quizplus · Accepted Answer

The Coase theorem proposes that if property rights are clearly defined and transactions costs are low, private parties will be able to negotiate and internalize externalities without the need for government intervention. Thus, it is fundamentally about assigning property rights.

In Part,the Coase Theorem Is a Proposition About