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The Coase Theorem works best in places that transaction costs for contracts among people is low. Often in the world of torts and externalities both parties can claim that they have rights to impose on others. One case is that of a railroad that is noisy and scares the cattle and the rancher whose cattle sometimes wander in front of moving trains causing damage to them and the train. What does the Coase say would happen

Respuesta :

Answer:

The response can be defined as follows:

Explanation:

Whether the costs of interactions are cheap, there'll be an effective activity, either by railroad or rancher installing fences to safeguard software system development or noise isolation and washing with plants, or, when cheap, fewer train rides each day. Regardless matter who has the original right of ownership, the cheapest or most efficient alternative will be given.