The Coase theorem does NOT apply if a. there is a significant externality between two parties. b.

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The Coase theorem does NOT apply if

a. there is a significant externality between two parties.

b. the court system vigorously enforces all contracts.

c. transaction costs make negotiation difficult.

d. both parties understand the externality fully.

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Principles Of Microeconomics

ISBN: 9780357133484

9th Edition

Authors: N Gregory Mankiw

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Question Posted: Jan 27, 2024 11:00 PM

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The Coase theorem does NOT apply if a. there is a significant externality between two parties. b.

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Principles Of Microeconomics

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