1)Define the Coase Theorem.

2)Aggregation of individual demand curves in the case of public goods involves:

a. Adding quantities for each given price,

b. Adding price for each given quantity,

c. Adding consumer surpluses for each consumer,

d. None of the answers.

1)The Coase theorem is used in legal and economic branch that is formulated by Ronald Coase is known as Coase theorem. According to Coase theorem, the property right does not impact the efficient set of output when there is no transaction cost involved in a market. This theorem is used in the situation of market inefficiency and helps the firms in efficient allocation of products.

2) b. Adding price for each given quantity.

It is because the amount charged against the provision of public goods is equal to the prices that all the stakeholders, who wish to use the commodity, are willing to give against the specified quantity.