________ states that under certain conditions, private parties can arrive at an efficient solution without government involvement.
A) The Tiebout hypothesis
B) The Coase theorem
C) The impossibility theorem
D) The free-rider hypothesis

Question

Quizplus · Accepted Answer

The Coase theorem posits that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.

________ States That Under Certain Conditions, Private Parties Can Arrive