The Coase theorem states that ?

Question

Xaibi Aslam · Accepted Answer

under certain conditions, private parties can arrive at the efficient solution without government involvement

Xaibi Aslam · Answer

public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good

Xaibi Aslam · Answer

the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.

Xaibi Aslam · Answer

if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced

Question #48382