A Meditation Class Meets on the Second Floor of a Building.The

question 89

Multiple Choice

A meditation class meets on the second floor of a building.The first floor is a nightclub.The loud music from the club disturbs the classes.The club could be soundproofed for a cost of $5,000 or moved at a cost of $8,000.The classroom cannot be soundproofed enough to overcome the music,but the class can be moved at a cost of $4,000.According to the Coase theorem,_____

• A)the club should be soundproofed so both businesses can stay open.
• B)the club should be soundproofed because it is the one generating the externality.
• C)the club should move rather than be soundproofed because eliminating an externality is better than compensating for it.
• D)the class should move because it can eliminate the externality at a lower cost than can the nightclub.
• E)whichever business has been there longer has a property right and the other should adjust.

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Definitions:

Glycolysis

Glycolysis is a metabolic pathway that breaks down glucose into pyruvate, releasing energy and pyruvic acid as a byproduct.

Citric Acid Cycle

A key metabolic pathway that integrates the energy from carbohydrates, fats, and proteins into usable energy in the form of ATP, also known as the Krebs cycle.

Preparatory Reaction

A phase or set of actions taken in anticipation of a foreseeable event or situation to ensure readiness.

Cellular Respiration

The metabolic process by which cells produce energy in the form of ATP from glucose.