Thinking about the Coase theorem,the private solution yields __________ amount of efficiency and ___________ distribution of surplus as compared to a government solution.
A) the same; the same
B) the same; a different
C) a different; the same
D) a different; a different

Question

Quizplus · Accepted Answer

The Coase theorem suggests that if property rights are well-defined and transaction costs are low, private negotiations will lead to an efficient allocation of resources, similar to a government solution. However, the distribution of surplus may differ based on the initial allocation of rights.

Thinking About the Coase Theorem,the Private Solution Yields __________ Amount