The Coase theorem will ________ if the number of people involved is small.

A) only apply
B) rarely apply
C) always apply
D) never apply

Question

The Coase theorem will ________ if the number of people involved is small.A)  only applyB)  rarely applyC)  always applyD)  never apply

Syazwani Azyan · Accepted Answer

Final Answer : A, Explanation :  The Coase theorem is more likely to apply when the number of people involved is small because transaction costs are lower, making it easier for parties to negotiate and reach an agreement on the allocation of resources or rights.

The Coase theorem will ________ if the number of people involved is small.

A) only apply
B) rarely apply
C) always apply
D) never apply

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Learning Objectives

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