The proposition that if bargaining is costless, then the market can achieve an efficient outcome is the:
A)Coase theorem.
B)property rights paradigm.
C)market rights theorem.
D)efficient environment paradigm.

Question

Quizplus · Accepted Answer

The Coase theorem states that if bargaining is costless and property rights are well-defined and transferable, then the market can achieve an efficient allocation of resources regardless of the initial assignment of property rights.

The Proposition That If Bargaining Is Costless, Then the Market