Part I of the Coase Theorem States That When There

Multiple Choice

Part I of the Coase Theorem states that when there are well-defined property rights and costless bargaining,then,in a market in which there is an externality,which statement is TRUE?

A) The socially optimal level of consumption can be achieved through the use of taxes and subsidies by the government.
B) The socially optimal level of consumption can be achieved through the use of quantity restrictions by the government.
C) The socially optimal level of consumption can be achieved through negotiations between the affected parties.
D) The socially optimal level of consumption cannot be achieved without mediation by the government.