Multiple Choice
According to the Coase theorem,how can an efficient outcome be reached
A) Private parties can bargain to reach an efficient outcome.
B) Government assistance is necessary for markets with externalities to reach an efficient outcome.
C) Both positive and negative externalities will always lead to inefficient outcomes in the markets.
D) No market will experience long-term externalities since normal market adjustments will eliminate externalities.
Correct Answer:

Verified
Correct Answer:
Verified
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