A Metal Stamping Factory Moves Next to a Day Care

Multiple Choice

A metal stamping factory moves next to a day care center.Noise from the factory makes it impossible for the kids to nap.It would cost the factory $5 million to move,and it would cost the day care center $1 million to move.Sound insulation for the factory costs $1 million,while insulation for the day care center costs $200,000.The court determines that the day care center has the property right.Which of the following optimal solutions is likely to be true given the scenario?

A) The factory should install sound insulation because that is cheaper than moving.
B) The factory should pay for the relocation of the day care center.
C) The factory should buy insulation for the day care center.
D) The day care center should buy its own insulation.
E) The day care center should relocate.