Property rights are incomplete because:
A)the Coase theorem does not hold.
B)it would imply that wealth is not maximized.
C)transaction costs are not zero.
D)the distinction between economic and legal property rights is fuzzy.

Question

Quizplus · Accepted Answer

Property rights are incomplete because transaction costs are not zero. This means that it can be difficult and costly to define, enforce, and protect property rights. Incomplete property rights often lead to conflicts and inefficiencies in resource allocation. The Coase theorem and wealth maximization are not directly related to the completeness of property rights, and while the distinction between economic and legal property rights may be a factor, it is not the main reason why property rights are incomplete.

Property Rights Are Incomplete Because