With the Coase theorem,the private solution yields:
A) a more efficient outcome than a government solution would.
B) a less efficient outcome than a government solution would.
C) the same amount of efficiency a government solution would.
D) None of these statements is true.

Question

Quizplus · Accepted Answer

The Coase theorem suggests that if property rights are well-defined and transaction costs are low, private parties can negotiate to reach an efficient outcome regardless of the initial allocation of rights, leading to the same efficiency as a government solution.

With the Coase Theorem,the Private Solution Yields