The Coase theorem asserts that the private market will always solve the problem of externalities and allocate resources efficiently

a. even if private parties experience substantial costs of bargaining.
b. even if the initial distribution of legal rights is skewed in favor of some private parties over others.
c. only when there is a large number of private parties that engage in bargaining.
d. All of the above are correct.


b

Economics

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Bank holding companies are examined by the __________________

Fill in the blank(s) with the appropriate word(s).

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Papayas and grapefruit are substitute goods. A drought in California destroyed a good portion of the grapefruit crop. Ceteris paribus,

A. the price of both papayas and grapefruit will fall. B. the price of both papayas and grapefruit will increase. C. the price of grapefruit will increase, and the price of papayas will fall. D. the price of grapefruit will fall, and the price of papayas will increase.

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