The Coase theorem suggests that taxes should be enacted to alleviate the effects of negative externalities.

Name: The Coase theorem suggests that taxes should be enacted to alleviate the effects of negative externalities.
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The Coase theorem suggests that if property rights are clearly defined and transaction costs are low, private parties can negotiate to solve the problem of externalities on their own without the need for government intervention, such as taxes.

The Coase Theorem Suggests That Taxes Should Be Enacted to Alleviate