Determine whether the statements is true, false, or uncertain.  If the statement is false or uncertain, please correct the statement to make it true.  If the statement is true, please explain your answer briefly.  Include a short definition of any underlined term.  1. Despite the appealing logic of the Coase theorem, private actors often fail to resolve on their own the problems caused by externalities because of the free rider problem.

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section10.3: Private Solutions To Externalities
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Determine whether the statements is true, false, or uncertain.  If the statement is false or uncertain, please correct the statement to make it true.  If the statement is true, please explain your answer briefly.  Include a short definition of any underlined term. 

1. Despite the appealing logic of the Coase theorem, private actors often fail to resolve on their own the problems caused by externalities because of the free rider problem.

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