According to the coase theorem, private markets will solve externality problems and allocate resources efficiently as long as a. businesses determine an appropriate level of production. b. government assigns property rights to the harmed party. c. private parties can bargain with sufficiently low transaction costs. d. the externalities that are present are positive, not negative.

The capital balances, prior to the liquidation of the benjamin, gaynor, megan partnership, were as follows: benjamin, capital $100,000gaynor, capital $120,000megan, capital $175,000benjamin, gaynor, and megan share profits and losses in the ratio of 25%, 40%, 35%. as a result of a loan, the partnership owes gaynor $80,000. using the information above, which partner has the highest loss absorption power (lap) prior to liquidation? a. gaynorb. meganc. benjamind. both gaynor and megan have the same lap