The coase theorem states that, in the presence of externalities, a market economy will:
...
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The coase theorem states that, in the presence of externalities, a market economy will:
select one:
a. reach an efficient solution only in the case of government regulation.
b. always reach an efficient solution.
c. never reach an efficient solution.
d. reach an efficient solution if transaction costs are sufficiently low and property rights are well-defined.
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