The Coase theorem states that ... a) property rights should initially be assigned to those affected by a negative externality. b) property rights should initially be assigned to those creating a negative externality. c) as long as property rights are well defined and no transactions costs exist, an efficient allocation will result. d) as long as property rights are well defined and transactions costs are high, an efficient allocation will result. e) an efficient allocation will also be equitable to all parties concerned.

c) as long as property rights are well defined and no transactions costs exist, an efficient allocation will result.

Explanation:

Coase theorem was developed in 1960 by a British economist and author named Ronald Coase.

Coase theorem states that when the actions of a party (X) negatively affects or harm another party (Y), then party Y should be able to create an incentive for party X to stop or limit the action creating such harm.

Generally, when transaction cost are low, the two parties are able to bargain and reach a mutual agreement in the presence of an externality such as a pollution.

An externality is typically an unwarranted cost or benefit by a manufacturer or producer of goods and services that affects a third party.

In Economics, an externality could either be positive or negative depending on its effect on a third party.

A negative externality arises when the production or consumption of a finished product or service has negative impact (cost) on a third party.

In conclusion, the Coase theorem is applicable only if there are well defined property rights, the number of people involved is small, and the cost of negotiation is low.

i believe the answer is: streets and roads

public property refers to the property that can be used by all legal citizens in a certain country. the public property was created and maintain using the government budget that allocated specifically for it. the budget itself come from the citizen's income tax payment.

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy