According to the Coase theorem,high transaction costs necessarily call for government action.

Name: According to the Coase theorem,high transaction costs necessarily call for government action.
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The Coase theorem suggests that if transaction costs are low, private parties can negotiate solutions to externalities on their own without government intervention. High transaction costs may hinder this negotiation, but the theorem does not necessarily call for government action in such cases.

According to the Coase Theorem,high Transaction Costs Necessarily Call for Government