The Coase theorem states that ?

• A. public goods should be produced up to the point where the additional benefit received by society equals the additional cost of producing the good
• B. under certain conditions, private parties can arrive at the efficient solution without government involvement
• C. the private sector will fail to produce the efficient amount of a public good because of the free-rider problem.
• D. if there are external costs in production the government must intervene in the market to assure that the efficient level of output is produced