According to the Coase theorem,there will be an efficient solution to the problem of toxic waste _____
A)if the creator of the toxic waste is assigned the property right and the bargaining costs are high.
B)if the victim of toxic waste is assigned the property right and the bargaining costs are high.
C)regardless of which party is assigned the property right as long as the bargaining costs are small.
D)if the property rights are shared equally between the creator and the victim of toxic waste.
E)if the government intervenes.

Question

Quizplus · Accepted Answer

According to the Coase theorem, an efficient solution can be reached regardless of which party is assigned the property right as long as the bargaining costs are small. This means that if the parties can negotiate and agree on a mutually beneficial solution without incurring high transaction costs, they can efficiently solve the problem of toxic waste without needing government intervention or a specific assignment of property rights.

According to the Coase Theorem,there Will Be an Efficient Solution