(Answered) 1. Which of the following would not be considered a negative externality?a. loud rap music at 2…

➤ Can private agreements resolve externality problems?
Sometimes. The Coase theorem says well-defined property rights and low transaction costs let parties bargain to an efficient outcome. In practice, many affected parties, high transaction costs, or public goods nature block private deals. Then legal rules, taxes, or regulation usually offer more practical solutions.