Multiple Choice
Dick owns a dog whose barking annoys Dick's neighbor Jane.Suppose that the benefit of owning the dog is worth $700 to Dick and that Jane bears a cost of $500 from the barking.Assuming Dick has the legal right to keep the dog,a possible private solution to this problem is that
A) Dick pays Jane $600 for her inconvenience.
B) Jane pays Dick $400 to give the dog to his parents who live on an isolated farm.
C) Jane pays Dick $550 to give the dog to his parents who live on an isolated farm.
D) The current situation is efficient.
Correct Answer:
Verified
Correct Answer:
Verified
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