The Coase theorem suggests that the government does not have to be involved at all in resolving a
market failure due to externalities.

Name: The Coase theorem suggests that the government does not have to be involved at all in resolving a market failure due to externalities.
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The Coase theorem suggests that if transaction costs are low and property rights are well-defined, then private parties can negotiate and solve the problem of externalities without any need for government intervention.

The Coase Theorem Suggests That the Government Does Not Have