The Major Implication of the Coase Theorem Is That

Multiple Choice

The major implication of the Coase theorem is that

A) government regulation is necessary to solve externalities.
B) competitive pressures will eliminate externalities.
C) resolving externalities is more costly than allowing them.
D) individuals can solve many externalities if they can buy and sell the right to commit the externality.
E) governmental solutions to externalities can only fail.