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.Which of the following best explains why the negative externality faced by the class arises?
A)The class has no property right to a quiet environment.
B)The club has a property right on the ground floor.
C)The class has a property right on the second floor.
D)The club uses an inappropriate technology (i.e., no soundproofing).
E)Both the club and class are profitable.

Question

Quizplus · Accepted Answer

The negative externality arises because the meditation class does not have a property right to a quiet environment, allowing the nightclub's noise to interfere with their activities without legal recourse.

A Meditation Class Meets on the Second Floor of a Building;