Changes

:The Coase theorem says that transaction costs interfere with efficient levels of activity.  When there are no transaction costs, then the free market attains the optimal use of a resource no matter who owns it. If transaction costs exist, then they impede the ability of people to deal with each other for the optimal result. Government regulations increase transaction costs, and thus are bad for the economy.

:The Coase theorem says that transaction costs interfere with efficient levels of activity.  When there are no transaction costs, then the free market attains the optimal use of a resource no matter who owns it. If transaction costs exist, then they impede the ability of people to deal with each other for the optimal result. Government regulations increase transaction costs, and thus are bad for the economy.

==See Also==

==See also==

http://conservapedia.com/Conservapedia:Index#Economics

http://conservapedia.com/Conservapedia:Index#Economics