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cricket20 [7]
3 years ago
14

Which of the following is an implication of the Coase Theorem?

Social Studies
1 answer:
Rudik [331]3 years ago
4 0

The correct answer is Government intervention is not always necessary to solve externality problems

The Coase Theorem says that, in an economic transaction with externalities, if property rights are well defined and if the transaction costs are low enough, then the private solution is socially optimal, with no need for government intervention to correct the situation. externality, which is a market failure. The government's only role would be to ensure that property rights are well defined and that free trade flows without transaction costs.

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<h3>Define short run demand .</h3>

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A company like ABC, which can make 10 cars per day, can be an example of a short run. Due to increased demand throughout the season, ABC is looking to increase production to 15 vehicles per day by Utilising the available infrastructure.

To know more about short-run visit :

brainly.com/question/16371205

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