A Meditation Class Meets on the Second Floor of a Building;

Multiple Choice

A meditation class meets on the second floor of a building; the first floor is a nightclub.The loud music from the club disturbs the classes.The club could be soundproofed for a cost of $5, 000 or move at a cost of $8, 000.The class can't soundproof enough to overcome the music, but could be moved for $4, 000.According to Coase, a socially optimal solution can be achieved if

A) the local government purchases the building
B) the building is torn down
C) property rights to be noisy are granted to the nightclub
D) property rights to a quiet environment are granted to the meditation class
E) both the nightclub and the meditation class relocate