Which of the following are assumptions behind the Coase theorem?
A) low transactions costs
B) low levels of pollution
C) high levels of pollution
D) the necessity of government intervention

Question

Quizplus · Accepted Answer

The Coase theorem assumes that if transaction costs are low and property rights are clearly defined, parties will negotiate to correct externalities without the need for government intervention.

Which of the Following Are Assumptions Behind the Coase Theorem