Multiple Choice
Hamid and Lee are neighbors. Hamid has a barking dog that he keeps in his backyard for property protection; he values the dog at $600. Lee despises the constant barking, because it costs him $800 in lost sleep. Assume Hamid has a legal right to own a barking dog. Because Hamid speaks Farsi and Lee speaks Korean, they need an interpreter to handle negotiations regarding the dog. There ____ a Coase solution to this problem if the interpreter costs $250 and ____.
A) is; Hamid pays Lee
B) is; Lee pays Hamid
C) is not; neither person pays the other
D) is; neither person pays the other
Correct Answer:
Verified
Correct Answer:
Verified
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