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

question 19

Multiple Choice

A meditation class meets on the second floor of a building.The first floor is a dance academy.The loud music from the academy disturbs the meditation classes.The academy could be soundproofed for a cost of $6,000 or moved at a cost of $9,000.The classroom cannot be soundproofed enough to overcome the music,but the class can be moved at a cost $5,000.According to the Coase theorem,the socially optimal solution can be achieved if _____

• A)the government purchases the building.
• B)the dance academy is relocated.
• C)property rights to be noisy are granted to the nightclub.
• D)property rights to a quiet environment at another location are granted to the meditation class.
• E)both the dance academy and the meditation class relocate.

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Definitions:

Capillaries

The smallest blood vessels in the body, which connect arteries and veins and enable the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and surrounding tissues.

Nutrients

Substances obtained from food that are vital for growth, repair, and normal metabolism in living organisms.

Diffusion

The process by which molecules move from an area of higher concentration to an area of lower concentration.

Henna Tattoos

Temporary tattoos created from the dye of the henna plant, often used for cultural and ceremonial occasions.