Thinking about the Coase theorem,the private solution yields __________ amount of efficiency and ___________ distribution of surplus as compared to a government solution.
A)the same;a different
B)the same;the same
C)a different;the same
D)a different;a different

Question

Quizplus · Accepted Answer

The Coase theorem posits that private parties can arrive at an efficient solution to a problem through bargaining and negotiation, regardless of who has the legal right to the property in question. Therefore, the private solution yields the same amount of efficiency as a government solution. However, the distribution of surplus in the private solution may be different from what a government solution would provide.

Thinking About the Coase Theorem,the Private Solution Yields __________ Amount