The Coase Theorem States That

Multiple Choice

The Coase theorem states that

A) positive externalities are directly related to the weather-the better the weather, the more positive externalities.
B) in the case of trivial or zero transaction costs, negative externalities are more likely to appear.
C) when transaction costs are high, positive externalities will be minimized.
D) in the case of trivial or zero transaction costs, the property rights assignment does not matter to the resource-allocative outcome.