Subjects
Case Briefs
Practice Tests
Pricing
Dashboard
Practice
Back to law and economics
Question 1 of 20
According to the Coase Theorem, if transaction costs are zero and property rights are well-defined, what is the expected outcome regarding the allocation of resources?
A.
The initial allocation of rights will determine the final efficient outcome.
B.
The parties will bargain to an efficient outcome regardless of the initial allocation of rights.
C.
Government intervention is required to correct externalities.
D.
The party with the legal right will always refuse to bargain.
Check Answer