# The Coase theorem states that ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: The Coase theorem states that ? Correct Answer: B. under certain conditions, private parties can arrive at the efficient solution without government involvement. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# The Coase theorem states that ?

Direct Answer & Quick Reference

The correct option is **B. under certain conditions, private parties can arrive at the efficient solution without government involvement**.

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

B. under certain conditions, private parties can arrive at the efficient solution without government involvement **(Correct Answer)**

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

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

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Verified Key: B. under certain conditions, private parties can arrive at the efficient solution without government involvement
Solved by 4,052+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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