Gerber3993 Gerber3993
  • 24-12-2022
  • Business
contestada

According to the Coase theorem, private parties can solve the problem of externalities if
a. the cost of bargaining is large.
b. the initial distribution of legal rights favors the person causing the negative externality.
c. property rights are clearly defined.
d. the number of parties involved is sufficiently large.

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