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The Coase theorem states that

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The Coase theorem states that

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positive externalities are directly related to the weather-the better the weather, the more positive externalities.

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in the case of trivial or zero transaction costs, negative externalities are more likely to appear.

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when transaction costs are high, positive externalities will be minimized.

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in the case of trivial or zero transaction costs, the property rights assignment does not matter to the resource-allocative outcome.

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Economics

Edition: 12^th

Author: Arnold

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