Multiple Choice
Which one of the following factors would NOT lessen the ability of the Coase theorem to solve an externality?
A) Negotiating requires lawyers and legal documents.
B) Many individuals bear the external cost.
C) The externality is an external benefit.
D) Many individuals generate the external cost.
E) The parties involved distrust and dislike each other.
Correct Answer:

Verified
Correct Answer:
Verified
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