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) positive externalities 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 great
D) any type of market failure
E) any type of market failure that involves high transaction costs