The Coase Theorem Works Provided

Multiple Choice

The Coase theorem works provided

A) the transactions costs of an agreement are above a high level.
B) the transactions costs associated with an agreement are low when compared with the costs of the externality itself.
C) the costs of an externality are low when compared with the transactions costs of an agreement.
D) both parties are willing to negotiate.
E) transactions costs of an agreement are high when compared with the costs of the externality.