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In Which of the Following Cases Is the Coase Theorem

Question 204

Multiple Choice

In which of the following cases is the Coase theorem most likely to solve the externality?


A) Ed is allergic to his roommate's cat.
B) Chemicals from manufacturing plants in the Midwest are causing acid rain in Canada.
C) Polluted water runoff from farms is making residents of a nearby town sick.
D) Industrialization around the world is causing global warming.

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