The Coase Theorem Says That, If the Appropriate Property Right

Multiple Choice

The Coase theorem says that, if the appropriate property right is assigned to __________, an efficient solution to an externality problem will be achieved.

A) the party causing the externality
B) the victim of the externality
C) the party that can avoid the externality at the higher cost
D) the party that can avoid the externality at the lower cost
E) either one of the parties involved