Which of the following statements is/are CORRECT?
Statement 1: The Coase Theorem’s conditions are ideally applicable to the case of traffic congestion externality on public roads.
Statement 2: Travelers in a congested public road system inflict negative externality on each other.

Question

Which of the following statements is/are CORRECT?  
 Statement 1: The Coase Theorem’s conditions are ideally applicable to the case of traffic congestion externality on public roads. 
 Statement 2: Travelers in a congested public road system inflict negative externality on each other.

Accepted Answer

Statement 2 is correct but Statement 1 is not.

Answer

Both statements are correct and Statement 2 does not help explain Statement 1.

Answer

Both statements are correct and Statement 2 helps explain Statement 1.

Answer

Statement 1 is correct but Statement 2 is not.

Crowdly

Which of the following statements is/are CORRECT? Statement 1: The Coase Theo...

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