The economist, Ronald Coase, demonstrated [at the University of Chicago Law School seminar] that the same trade-offs that challenged market actors could also sabotage efficient outcomes designed by regulators...The effectiveness of social coordination by the law was assumed. What was the issue that cause the "problems"? Question 5 options: public sector Free markets operating perfectly private Free markets operating imperfectly The friction summarized as "transaction costs" were assumed to be zero for private sector as well as public sector dealings. Unregulated actors - confused by mixed signals