The Coase Theorem Suggests That Private Bargains Will Ensure the Efficiency

Multiple Choice

The Coase theorem suggests that private bargains will ensure the efficiency of markets even when externalities exist:

A) but only in the presence of government regulation.
B) if consumers have more information regarding the externality than suppliers.
C) if transaction costs are low and property rights are well defined.
D) if the cost of the negotiations are less than the price of the good.