The Coase theorem is the proposition that if property rights exist and are enforced,private transactions are
A) inefficient.
B) efficient.
C) inequitable.
D) illegal.
E) unnecessary.

Question

Quizplus · Accepted Answer

The Coase theorem states that if property rights exist and are enforced, private transactions will lead to an efficient allocation of resources, regardless of how the property rights are initially assigned. This means that private individuals and businesses can negotiate and trade with each other to achieve the desired outcomes independently of government intervention.

The Coase Theorem Is the Proposition That If Property Rights