The Coase Theorem implies that _____.
A)absent transactions costs,resources will be efficiently allocated
B)absent transactions costs,resources will be inefficiently allocated
C)with significant transactions costs,resources will be efficiently allocated
D)with significant transactions costs,resources will be inefficiently allocated

Question

Quizplus · Accepted Answer

The Coase Theorem states that in the absence of transaction costs, resources will be efficiently allocated regardless of who has the property rights. This means that even if allocation is initially inefficient, bargaining between parties will result in an efficient allocation of resources. Therefore, option A is correct. Options B, C, and D are incorrect.

The Coase Theorem Implies That _____