2804EconomicsMedium
The Coase theorem states that?
Aunder certain conditions, private parties can arrive at the efficient solution without government involvement
Bif there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced
Cthe private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
Dpublic goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good
Correct answer
A. under certain conditions, private parties can arrive at the efficient solution without government involvement
Explanation
The correct answer is under certain conditions, private parties can arrive at the efficient solution without government involvement.