Question: What does the Coase theorem suggest about private solutions to externality problems? a. They can lead to an optimal allocation of resources if private parties

What does the Coase theorem suggest about private solutions to externality problems?

a. They can lead to an optimal allocation of resources if private parties can bargain at relatively low cost.

b. They result in the efficient outcome under all conditions.

c. They result in the same distribution of wealth no matter how property rights are assigned.

d. They result in different efficiency levels of production, depending crucially on how property rights are assigned.

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