Suppose a Negative Externality Exists in a Market

Multiple Choice

Suppose a negative externality exists in a market.If transactions costs are low and parties are willing to bargain, then, according to the Coase theorem,

A) an efficient solution can be reached only if property rights are assigned to the victims of the pollution.
B) an efficient solution can be reached only if property rights are assigned to the polluters.
C) an efficient solution can be reached regardless of the initial assignment of property rights.
D) government intervention is critical to reach an efficient solution.