According to the Coase theorem, transaction costs have to be ______.

The purpose of an effluent fee is to

A) reduce the amount produced of a good and to raise the market price. B) correct for pollution while keeping the price of the good the same as before the correction. C) reward people producing externalities. D) encourage producers to keep the quantity produced the same while lowering the price.

Positive incentives: a. increase benefits or reduce costs

b. decrease the amount of affected behaviors. c. increase the amount of affected behaviors. d. Do both a. and c.