The Coase Theorem States That

Multiple Choice

The Coase theorem states that

A) transaction costs consist of marginal private costs and marginal social costs and are higher when exchange is subject to increasing marginal costs.
B) transaction costs are the difference between marginal social costs and marginal private costs and are higher when exchange is subject to decreasing marginal costs.
C) when transaction costs are significant, the resource-allocative outcome will be the same regardless of who is assigned the property rights.
D) when transaction costs are insignificant, the resource-allocative outcome will be the same regardless of who is assigned the property rights.
E) b and c