Suppose That You Rent a House Next to a Factory

question 99

Multiple Choice

Suppose that you rent a house next to a factory. The factory legally emits a chemical into the air that smells like feet. You now have to spend $300 more per month on air fresheners because the firm pollutes the air. You could move to another house far enough away from the factory, but the rent for that house is $200 more than you now pay. The efficient solution to this problem is that

• A) the factory owner should compensate you $300 so that you can pay for the additional expenses you incur.
• B) you should move to the new house because the additional rent on that new house is less than the additional expenses you incur from living next to the factory.
• C) the factory owner should reimburse you $100, the difference between your expenses and the higher rent on the new house.
• D) the firm should be able to continue to pollute because only one person is being harmed by the factory's pollution.

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Definitions:

Lek

Of some birds, a communal mating display area for males.

Large Territories

Expansive areas controlled or inhabited by a particular country, organism, or individual, often associated with the acquisition of resources or living space.

Methylation

The addition of a methyl group to a molecule, often DNA, affecting gene expression without changing the DNA sequence.

Acetyl Group

A chemical group derived from acetic acid, with the formula CH3CO, important in various biological processes including metabolism.