The assumptions needed for the Coase theorem to work:
A)often do not hold true in the real world.
B)are often observed in the real world.
C)never hold true in the real world.
D)always hold true in the real world.

Question

Quizplus · Accepted Answer

The assumptions needed for the Coase theorem to work, such as perfect competition, symmetric information, and no transaction costs, often do not hold true in the real world. Therefore, the theorem might not be applicable in many real-world situations.

The Assumptions Needed for the Coase Theorem to Work