Question

The Coase theorem says that if transaction costs are low and property rights are clearly defined, then BLANK will ensure that the market equilibrium is efficient BLANK

a) Economics
b) Law
c) Political Science
d) Engineering

Answer 1

The Coase theorem states that if transaction costs are low and property rights are clearly defined, then Economics will ensure that the market equilibrium is efficient.

Step-by-step explanation:

The Coase theorem states that if transaction costs are low and property rights are clearly defined, then Economics will ensure that the market equilibrium is efficient. This is because well-defined property rights incentivize parties to internalize external costs and negotiate efficient solutions.