The coase theorem implies that we never need to worry about regulating externalities because the private individuals involved will reach the efficient outcome through negotiations. is that statement true or false? justify your answer and use examples.

Jack owns a small home near a school. he doesn't have any children, and doesn't plan on having any in the future. jack is a writer and works out of his home. all of the noise from the playground during the day interrupts jack while he is trying to work. tina, a friend of jack's, also owns a small home. her home is in a quiet, little secluded neighborhood. she has a child that will be entering first grade in the fall and wishes she lived closer to a school. one day, jack asked tina if she would want to exchange homes. is this a possibility? a. yes, a trade of properties (exchange) is possible if the trade involves no financing and the properties are not mortgaged.b. yes, a trade of properties (exchange) is possible if the trade involves no financing.c. no, it is not a possibility. simply "trading" real estate is not recognized under california real estate law.d. none of the above