Suppose Winston's loud music externalizes a cost onto his neighbor, Chloe. Suppose Winston and Chloe decide to solve this problem using the Coase theorem. If they are successful, what is a possible result of the execution of this theorem?a. The government taxes Winston for his loud music.
b. Chloe and Winston solve their differences in a market for tradable allowances of loud music.
c. Chloe pays Winston weekly to refrain from playing music loudly.
d. Winston pays Chloe once (as a fine) and refrains from playing music loudly.

d. Winston pays Chloe once (as a fine) and refrains from playing music loudly.

Explanation:

Coase Theorem states that in case of externalities : two parties can bargain and arrive at an efficient outcome, if the transaction costs are low.

Winston's loud music is a negative externality for neighbour Chloe. So, the negative external cost can be compensated , by including it in monetary exchange mechanism .

For negative external effect upto now : Winston should pay chloe 'fine', as the former's act has had an  extra extra social cost on the latter . Winston should also refrain from paying loud music thereafter.

[content deleted] - user123802726recklesschicken

the correct answer is individualism and exchange. at this stage, children begin to question the rules, because they can see that there is more than one side to them. different individuals have different viewpoints. they won't be able to reach this stage because of ignorance, a lack of ethics or personal biases. that is because people with that characteristiscs are not able to distinguish what is good or what is bad and they can't pursue their individual interests.