A Dentist Shares an Office Building with a Radio Station

question 102

Multiple Choice

A dentist shares an office building with a radio station. The electrical current from the dentist's drill causes static in the radio broadcast, causing the radio station to lose $10,000 in profits. The radio station could put up a shield at a cost of $30,000; the dentist could buy a new drill that causes less interference for $6,000. Either would restore the radio station's lost profits. What is the economically efficient outcome?

• A)The radio station puts up a shield, which it pays for.
• B)The radio station puts up a shield, which the dentist pays for.
• C)Neither the radio station nor the dentist purchase additional equipment.
• D)The dentist gets a new drill; it does not matter who pays for it.

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Definitions:

Supreme Court

The highest judicial body in the United States, possessing the ultimate appellate jurisdiction and authority to interpret the constitutionality of laws.

Exclusionary Rule

A legal principle in the United States that excludes evidence obtained in violation of a defendant's constitutional rights from being presented in court.

Police Searches

The examination or inspection by law enforcement officers of individuals, vehicles, premises, etc., for illicit material or evidence of illegal activity, usually requiring probable cause or a warrant.

Lemon Test

A three-part test created by the Supreme Court to determine when a law has the effect of establishing religion, in violation of the First Amendment.