Paul Owns a Home on the Top of a Hill

question 77

Multiple Choice

Paul owns a home on the top of a hill and enjoys an unobstructed view of a large wooded area.The view was a large factor in his decision to buy the house and Paul values his view at $5000 per month.Sid purchases the undeveloped wooded area with plans to build a retail shopping centre.Sid expects to earn $10,000 a month from the shopping centre,which is $3000 more than his next best alternative.
-Refer to the information above.The reciprocal nature of externalities expressed by Coase is illustrated by noting that

• A) Paul is the only one harmed.
• B) Sid is the only one who benefits.
• C) Sid does not have to build the shopping centre.
• D) if Paul is successful in legally stopping construction of the shopping centre,Sid will be harmed.
• E) Paul could move elsewhere.

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Definitions:

Nuisance Action

A lawsuit filed to stop or rectify a harm that arises from the improper use of land, which interferes with a person's enjoyment or use of their own land.

Battery

A tort involving non-consensual, harmful, or offensive physical contact with another person.

Assault

An act that intentionally puts another person in reasonable apprehension of imminent harmful or offensive contact.

Self-Defense

A legal justification for the use of force to protect oneself or another from immediate harm.