According to the Coase theorem, private parties can solve the problem of externalities if a. the...

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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. Od. the number of parties involved is sufficiently large. 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. Od. the number of parties involved is sufficiently large.

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according to Coarse theorems private parties can solve the ... View the full answer