The Coase Theorem States That,in the Presence of Externalities,a Market

Multiple Choice

The Coase theorem states that,in the presence of externalities,a market economy will:

A) always reach an efficient solution.
B) never reach an efficient solution.
C) reach an efficient solution if transaction costs are sufficiently low and property rights are well-defined.
D) reach an efficient solution only in the case of government regulation.