According to Ronald Coase, for a free-market economy to work efficiently, there needs to be:

Question

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Ronald Coase emphasized the importance of private property rights in his analysis of free-market economies. He argued that private property rights lead to efficient allocation of resources because they enable market participants to internalize the costs and benefits of their actions. This, in turn, leads to better decision-making and reduces the need for government intervention. However, for private property rights to be effective, transaction costs need to be low. High transaction costs can impede the efficient functioning of markets, making it difficult for parties to negotiate and enforce contracts. Thus, option A is the correct answer.

According to Ronald Coase, for a Free-Market Economy to Work