A Large Farming Operation Which Uses a Potent Fertilizer Is

Multiple Choice

A large farming operation which uses a potent fertilizer is located up river from a trout farmer. If property rights of the river exist and transactions costs are low, the amount of pollution will be

A) efficient only if the trout farmer owns the river.
B) inefficient if the farming operation owns the river.
C) efficient if either the farming operation or the trout farmer own the river.
D) always inefficient.