Multiple Choice
In episode 12 of the sixth season of The Sopranos, A. J. is watching television with his girlfriend Bianca at her apartment when a group of neighborhood youths begins playing music at a very loud level outside. A. J. approaches the youths and offers them his new mountain bike if they will stop playing the music and leave. The group of youths accepts the mountain bike and leaves. This scene is an example of ________.
A) pecuniary externality
B) high transaction costs preventing bargaining from reaching the efficient outcome
C) the large number of parties involved in an exchange preventing bargaining from reaching the efficient outcome
D) the Coase Theorem
Correct Answer:

Verified
Correct Answer:
Verified
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