A Meditation Class Meets on the Second Floor of a Building.The

Multiple Choice

A meditation class meets on the second floor of a building.The first floor is a dance academy.The loud music from the academy disturbs the meditation classes.The academy could be soundproofed for a cost of $6,000 or moved at a cost of $9,000.The classroom cannot be soundproofed enough to overcome the music,but the class can be moved at a cost $5,000.According to the Coase theorem,the socially optimal solution can be achieved if _____

A) the government purchases the building.
B) the dance academy is relocated.
C) property rights to be noisy are granted to the nightclub.
D) property rights to a quiet environment at another location are granted to the meditation class.
E) both the dance academy and the meditation class relocate.