A Familiar Example of a Negative Externality Is Loud Music

Multiple Choice

A familiar example of a negative externality is loud music in a busy park on a weekend. In principle, it should be possible to solve this externality by permitting park visitors to negotiate rights to play music in particular locations or at specific times. The most likely reason these negotiations do NOT occur is that:

A) most people are unfamiliar with the Coase theorem.
B) the bargaining costs of identifying and establishing communications between all affected parties would be high.
C) music is an experience, not a good.
D) some park goers do not view loud music as a negative externality.