According to the Coase Theorem, under the assumptions that transactions are costless and damages are accessible and measurable: an efficient outcome is possible regardless of whether property rights exist an efficient outcome is possible as long as property rights exist, regardless of who holds those rights an efficient outcome is not possible in the presence of an environmental externality None of these answers are correct.

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter5: Difficult Cases For The Market And The Role Of Government
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According to the Coase Theorem, under the assumptions that transactions are
costless and damages are accessible and measurable:
an efficient outcome is possible regardless of whether property rights exist
an efficient outcome is possible as long as property rights exist, regardless of
who holds those rights
an efficient outcome is not possible in the presence of an environmental
externality
None of these answers are correct.
Transcribed Image Text:According to the Coase Theorem, under the assumptions that transactions are costless and damages are accessible and measurable: an efficient outcome is possible regardless of whether property rights exist an efficient outcome is possible as long as property rights exist, regardless of who holds those rights an efficient outcome is not possible in the presence of an environmental externality None of these answers are correct.
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