The Coase Theorem does not imply which of the following?
a. Resources will be allocated efficiently in the absence of transactions costs.
b. Resources will move to their highest valued use in there are no transactions costs.
c. The initial allocation of property rights does not matter to the parties involved.
d. The allocation of resources is independent of the assignment of property rights if transactions costs are zero.
c
You might also like to view...
Relative to life insurance companies, the liabilities of property and casualty insurance companies are
A) longer-term. B) more unpredictable. C) less risky. D) subject to higher taxes.
Assume the price of Nikes decreases. As a result, consumers increase the quantity of Nikes purchased each year and purchase fewer Reeboks. This is an example of the:
a. substitution effect. b. income effect. c. utility effect. d. consumption effect.