According to the Coase theorem, if transactions and negotiations are costless:
A)people would arrive at agreements that maximize their individual benefits.
B)people would arrive at agreements that maximize the total economic value.
C)people would arrive at agreements that minimize their individual costs.
D)people would arrive at agreement that minimize the total social cost.

Question

Quizplus · Accepted Answer

According to the Coase theorem, if transactions and negotiations are costless, people would arrive at agreements that maximize the total economic value. This means that the parties involved would take into account not only their own individual benefits but also the benefits and costs to others in order to maximize the total benefits to society as a whole.

According to the Coase Theorem, If Transactions and Negotiations Are