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chubhunter [2.5K]
3 years ago
5

A coase solution to a problem of externality insures ensures that a socially efficient outcome is to:

Business
1 answer:
Zinaida [17]3 years ago
5 0

Answer:

The correct answer is letter "C": maximize the joint welfare, irrespective of the right of ownership.

Explanation:

Named after British economist Ronald Coase (1910-2013) the Coase Theorem is a legal and economic theory which states that, when there are competitive markets and no transaction costs, <em>bargaining will result in an effective and mutually beneficial outcome irrespective of how property rights are distributed</em>.

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