Nick Owns a Dog Whose Barking Annoys His Neighbor Jane

Multiple Choice

Nick owns a dog whose barking annoys his neighbor Jane. Suppose that the benefit of owning the dog is worth $500 to Nick, and that Jane bears a cost of $700 from the barking. Assume that the city has no ordinance against barking dogs. A possible private solution that would benefit both parties is for:

A) ​Jane to pay Nick $450 to get rid of the dog.
B) ​Nick to pay Jane $650 for her inconvenience.
C) ​Jane to pay Nick $650 to get rid of the dog.
D) ​There is no private solution that would improve this situation for both parties.