Chad's Maple Tree Hangs Over Amy's Fence and Drops Leaves

Multiple Choice

Chad's maple tree hangs over Amy's fence and drops leaves into her yard each autumn.The benefit to Chad of lower utility bills is about $300.The cost to Amy of having her lawn cleaned and reseeded is $350.Based on the Coase theorem,what should result

A) Amy should pay Chad $325 to cut down the tree.
B) Chad should pay Amy $350 to have her lawn repaired and cleaned.
C) Chad should pay Amy $400 to keep the tree.
D) Amy should build a higher fence.