Which of the following is true of the Coase theorem?
A. It pertains to distributive objectives and social justice.
B. It addresses the private attainment of social efficiency and the conditions for its attainment.
C. It implies that when bargaining between the parties to an externality is possible, social efficiency cannot be achieved.
D. It underrates the role of government in assigning entitlements to private parties.
Answer:B
Which of the following is true of the Coase theorem?
A. It pertains to distributive objectives and social justice. B. It addresses the private attainment of social efficiency and the conditions for its attainment. C. It implies that when bargaining between the parties to an externality is possible, social efficiency cannot be achieved. D. It underrates the role of government in assigning entitlements to private parties.