The Coase Theorem Argues That the Assignment of Property Rights

Multiple Choice

The Coase theorem argues that the assignment of property rights will generate an efficient solution to the problem of _____

A) arbitrage, as long as bargaining costs are small.
B) negative externalities, as long as bargaining costs are small.
C) negative externalities, as long as bargaining costs are high.
D) moral hazard, as long as bargaining costs are small.
E) adverse selection, as long as bargaining costs are small.