Which of the Following Statements About the Coase Theorem Is

Multiple Choice

Which of the following statements about the Coase theorem is true?

A) Underlying the results of the Coase theorem is the idea that private parties can bargain without cost over the allocation of resources.
B) The Coase theorem asserts that private solutions to externalities invariably lead to inefficient allocations of resources.
C) The Coase theorem applies to negative externalities, but not to positive externalities.
D) All of the above are correct.