State the Coase theorem
What will be an ideal response?
The Coase theorem states that if transactions costs are low, private bargaining will result in an efficient solution to the problem of externalities, regardless of initial assignment of property rights.
Economics
You might also like to view...
Resale is difficult when
A) the good is light-weight. B) the good is expensive. C) transaction costs are high. D) transaction costs are negligible.
Economics
When the marginal product of labor rises
A) the marginal cost of production will exceed the average total cost. B) the marginal cost of production also rises. C) the marginal cost of production falls. D) the average total cost of production also rises.
Economics