According to the Coase theorem, in order to solve a negative externality problem efficiently,
a. the property right must be assigned to the party with the least-cost alternative
b. the property right must be assigned to the victim of pollution
c. transaction costs must be high
d. transaction costs must be low
e. property rights must be determined by the courts
D
Economics
You might also like to view...
If there is excess demand in a perfectly competitive market, does the government need to intervene to restore the equilibrium price and quantity?
What will be an ideal response?
Economics
Outline the various actions the government sector could take to promote growth
What will be an ideal response?
Economics