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According to the Coase Theorem

Question 69

Multiple Choice

According to the Coase theorem,


A) government intervention is necessary in order to solve an externality problem
B) an externality is a form of market failure
C) under certain conditions,the private market will solve externality problems efficiently
D) the private market will usually solve externality problems,except when side payments are necessary
E) negative externalities are less efficient that positive externalities

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