According to the Coase theorem, the inefficiencies caused by externalities can be removed by the private sector if individuals enter into appropriately structured deals, provided that the transaction costs of such deals are sufficiently low.False

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According to the Coase theorem, if property rights are well-defined and transaction costs are sufficiently low, individuals can negotiate efficient solutions to externalities without government intervention. However, the theorem does not guarantee that private solutions will always emerge, as some externalities are too complex or involve too many parties to be resolved privately. Therefore, the statement is partially true, as transaction costs must be low, but it is not accurate to suggest that private sector deals can always remove inefficiencies caused by externalities.

According to the Coase Theorem, the Inefficiencies Caused by Externalities