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Meaning of Coase theorem | Babel Free

Noun CEFR B2

Definitions

A theorem stating that, if trade in an externality is possible and there are sufficiently low transaction costs, bargaining will lead to a Pareto efficient outcome regardless of the initial allocation of property.

CEFR level

B2
Upper Intermediate
This word is part of the CEFR B2 vocabulary — upper intermediate level.

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