Ronald Coase argued that market equilibriums would be efficient even in the presence of externalities when property rights are ______ and transaction costs are ______.
A) uncertain; high
B) uncertain; low
C) certain; high
D) certain; low

Question

Quizplus · Accepted Answer

Coase argued that if property rights are well-defined and transaction costs are low, parties can negotiate and arrive at an efficient outcome that minimizes the negative externality. Therefore, option D, which states that property rights are certain and transaction costs are low, is the best choice.

Ronald Coase Argued That Market Equilibriums Would Be Efficient Even