The Coase Theorem says that which of the following is necessary to lead to an efficient use of resources?
A) Government intervention
B) Presence of transaction costs
C) Existence of property rights
D) All of the above answers are correct.

Question

Quizplus · Accepted Answer

The Coase Theorem posits that if property rights are clearly defined and transaction costs are negligible, parties can negotiate to correct for externalities and allocate resources efficiently without the need for government intervention.

The Coase Theorem Says That Which of the Following Is