Consider the following characteristics:
A.low transactions costs
B.small levels of pollution
C.high levels of pollution
D.clear assignment of property rights
Which of the above are assumptions behind the Coase Theorem?
A)a, b, and d
B)a, c, and d
C)a and d
D)a only

Question

Quizplus · Accepted Answer

The Coase Theorem assumes low transactions costs and clear assignment of property rights, but it does not assume small or high levels of pollution.

Consider the Following Characteristics