Multiple Choice
According to the Coase Theorem, private solutions to externalities can lead to the socially efficient outcome when:
I.transaction costs are negligible
II.property rights are clearly defined
IiI.the number of parties involved is small
A) (i) , (ii) , and (iii)
B) (i) and (ii) only
C) (iii) only
D) (ii) and (iii) only
Correct Answer:
Verified
Correct Answer:
Verified
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