A. if transaction costs are low, private deals will create externalities and result in inefficient outcomes.
B. if transaction costs are low, private bargaining will result in an efficient solution to the problem of externalities.
C. if transaction costs are low, the government will regulate an efficient solution to the problem of externalities.
D. if transaction costs are low, private markets will create externalities and result in efficient outcomes.
E. if imposed on free markets, government regulations will result in inefficient outcomes and create deadweight loss.
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