Anita enjoys growing flowers in her yard and has a lot of spare time,but she can't afford the $100 it costs to buy flower seeds,fertilizer and water.Sally,who has a good view of Anita's yard,would also enjoy Anita's flowers.Sally has plenty of money but has no time to plant flowers.According to the Coase theorem,

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According to the Coase theorem, if transaction costs are low, two parties can negotiate a mutually beneficial agreement regardless of the initial allocation of property rights. In this case, Anita values the flowers more than the $100 it costs to buy the necessary items, while Sally values the flowers but does not have the time to plant them. Therefore, it would be efficient for Sally to give the $100 to Anita to plant the flowers and both parties would be better off. This solution avoids government intervention and allows for a voluntary exchange between the two individuals.

Anita Enjoys Growing Flowers in Her Yard and Has a Lot