According to the Coase theorem, Answers: a. the assignment of property rights lead to equitable but inefficient solutions to externality problems. b. externality problems can be solved efficiently by the assignment of property rights if transaction costs are low. C. it is necessary to assign property rights when bargaining costs are high.
According to the Coase theorem, Answers: a. the assignment of property rights lead to equitable but inefficient solutions to externality problems. b. externality problems can be solved efficiently by the assignment of property rights if transaction costs are low. C. it is necessary to assign property rights when bargaining costs are high.
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Transcribed Image Text:According to the Coase theorem,
Answers:
a.
the assignment of property rights lead
to equitable but inefficient solutions to
externality problems.
b.
externality problems can be solved
efficiently by the assignment of
property rights if transaction costs are
low.
C.
it is necessary to assign property
rights when bargaining costs are high.
d.
externality problems can be solved
efficiently by the assignment of
property rights if transaction costs are
high.
e.
government regulation is necessary to
eliminate negative externalities.
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